How to Calculate Percentage Increase, Decrease, and Relative Difference

The Core Percentage Change Formula

Whenever you want to calculate how much a number has grown or declined relative to its original starting point, use the universal percentage change formula:

* If the result is positive (+), you have a Percentage Increase. * If the result is negative (−), you have a Percentage Decrease.

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Step-by-Step Examples

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Example 1: Percentage Increase

Suppose your monthly SaaS software subscription increases from $40 to $50. 1. Difference: $50 - 40 = 10$. 2. Divide by original: $10 / 40 = 0.25$. 3. Multiply by 100: $0.25 \times 100 = \mathbf{25\%\text{ Increase}}$.

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Example 2: Percentage Decrease

A winter coat is marked down from $120 to $90. 1. Difference: $90 - 120 = -30$. 2. Divide by original: $-30 / 120 = -0.25$. 3. Multiply by 100: $-0.25 \times 100 = -25\% \rightarrow \mathbf{25\%\text{ Discount / Decrease}}$.