Understanding Percentage Calculations
Basic Percentage Formula
The fundamental percentage formula is:
Percentage = (Part / Whole) × 100
This converts a fraction into a percentage by multiplying by 100.
Converting Between Formats
- Percentage to Decimal: Divide by 100 (25% = 0.25)
- Decimal to Percentage: Multiply by 100 (0.75 = 75%)
- Percentage to Fraction: Put over 100 and simplify (40% = 40/100 = 2/5)
- Fraction to Percentage: Divide and multiply by 100 (3/4 = 0.75 = 75%)
Common Percentage Formulas
Finding X% of Y:
Result = (X / 100) × Y
Example: 20% of 500 = (20/100) × 500 = 100
Finding What % X is of Y:
Percentage = (X / Y) × 100
Example: 25 is what % of 200? = (25/200) × 100 = 12.5%
Finding the Whole (X is Y% of what?):
Whole = X / (Y / 100)
Example: 50 is 25% of what? = 50 / (25/100) = 200
Percentage Increase:
New Value = Original × (1 + Percentage/100)
Example: 100 increased by 20% = 100 × (1 + 20/100) = 120
Percentage Decrease:
New Value = Original × (1 - Percentage/100)
Example: 100 decreased by 20% = 100 × (1 - 20/100) = 80
Percentage Change:
Change = ((New - Old) / Old) × 100
Example: Change from 50 to 75 = ((75-50)/50) × 100 = +50%
Reverse Percentage (After Increase):
Original = Final / (1 + Percentage/100)
Example: $120 after 20% increase, original = 120/(1+0.20) = $100
Reverse Percentage (After Decrease):
Original = Final / (1 - Percentage/100)
Example: $80 after 20% discount, original = 80/(1-0.20) = $100
Percentage vs Percentage Points
Important Distinction:
- Percentage Change: Relative change. If something goes from 10% to 15%, that is a 50% increase.
- Percentage Points: Absolute change. If something goes from 10% to 15%, that is a 5 percentage point increase.
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