The percentage increase formula

Percentage increase measures how much a value has grown relative to its starting point. The formula compares the difference between the new value and the original value to the original value itself.

Percentage Increase = (New Value - Original Value) / Original Value x 100

Three steps: subtract the original from the new value, divide that difference by the original value, then multiply by 100. The result tells you the growth as a percentage of the starting amount.

Step-by-step example: salary raise

Your salary increases from $52,000 to $57,200. What is the percentage increase?

  1. Find the difference: $57,200 - $52,000 = $5,200
  2. Divide by the original: $5,200 / $52,000 = 0.10
  3. Multiply by 100: 0.10 x 100 = 10%

You received a 10% raise.

Example: price increase

A monthly subscription goes from $15 to $18. What is the percentage increase?

(18 - 15) / 15 x 100 = 3 / 15 x 100 = 0.20 x 100 = 20%

The subscription price increased by 20%.

Notice that the original value always goes in the denominator. Using the new value as the denominator would give the wrong answer. If you accidentally calculated 3 / 18 x 100, you would get approximately 16.7% -- an understatement of the true increase.

Example: population growth

A town's population grows from 8,400 to 10,080 over five years. What is the percentage increase?

  1. Difference: 10,080 - 8,400 = 1,680
  2. Divide: 1,680 / 8,400 = 0.20
  3. Multiply: 0.20 x 100 = 20%

The population grew by 20%.

This example shows that percentage increase works the same way regardless of scale -- a salary, a subscription or a town population all use the identical formula.

Common mistakes to avoid

  • Dividing by the new value instead of the original. The denominator is always the starting point. Dividing by the new value underestimates increases and exaggerates decreases.
  • Forgetting to multiply by 100. 0.10 is the decimal form; 10% is the percentage form. Both are correct, but "10%" is what most people expect.
  • Confusing percentage points with percent. An increase from 5% to 10% is a 100% increase in relative terms, but a 5 percentage-point increase in absolute terms. Know which one you mean.
  • Applying the formula to decreases. If the new value is smaller than the original, the formula produces a negative result. Use the percentage decrease formula instead for clearer interpretation.

When to use percentage increase

Use percentage increase whenever you need to communicate growth relative to a starting point. Common scenarios include:

  • Salary raises and wage growth
  • Revenue and profit growth year-over-year
  • Price inflation on goods and services
  • Website traffic or user growth
  • Investment returns and portfolio growth

For situations where you need to compare two values without designating one as the original, consider percentage change instead. For comparing two values symmetrically without a baseline, use percentage difference.

Try the numbers from the examples above with these tools.