Money & Finance · Lesson 8 of 14
Percentage Increase and Decrease
To increase by p% multiply by 1 + p/100. To decrease multiply by 1 - p/100. Percentage change is the change divided by the original.
- Secondary
- Updated
What you will learn
- Increase or decrease an amount by a percentage.
- Find a percentage change.
- Work backwards to the original amount.
Before you start: you should be able to find a percentage of an amount and know about sale prices. See Percentages and Discounts and Sale Prices.
The idea
To increase an amount by you end up with of the original, so multiply by . To decrease by you keep , so multiply by . These multipliers turn a two-step calculation into one.
Percentage change
To find a percentage change, divide the change by the original amount and multiply by .
Reverse percentages
If you know the amount after a change, divide by the multiplier to find the original. A price of £ after a rise was .
Why up then down does not cancel
A rise followed by a fall does not get you back to the start, because the second percentage is of a bigger amount.
Worked examples
Example 1: Percentage change
A town grows from to . What is the percentage increase?
- Change: .
- Divide by the original: .
- Multiply by .
Answer: increase.
Example 2: Use a multiplier
A £ phone loses of its value in a year. What is it worth then?
- A decrease of leaves , so multiply by .
- .
Answer: £
Example 3: Reverse percentage
After a price rise a concert ticket costs £. What was the original price?
- .
- .
Answer: £
Tip: always divide the change by the original value, not the new one.
Why it matters
Pay rises, price changes, population growth and falling stock values are reported as percentage changes. Multipliers are also the key idea behind compound interest, where the same multiplier is applied again and again.
Practice
Your turn. Type or choose an answer, then press Check. Getting one wrong is fine, that is what practice is for. You can try as many times as you like.