The three-step method
- Find the increase. Subtract the old value from the new value. This is the raw increase in dollars, points, or units.
- Divide by the old value. Always divide by the starting value, not the new one. This turns the raw increase into a fraction of where you began.
- Multiply by 100. Convert the decimal into a percentage.
percent increase = ((new value - old value) / old value) x 100
Run through the steps once with a simple pair, $80 to $100: 100 - 80 = 20, then 20 / 80 = 0.25, then 0.25 x 100 = 25 percent. That is the whole method; everything below is practice.
Example 1: a salary raise
A salary goes from $52,000 to $57,200. Step one: 57,200 - 52,000 = 5,200. Step two: 5,200 / 52,000 = 0.10. Step three: 0.10 x 100 = 10 percent. That raise is a 10 percent increase.
Tip for large numbers: the zeros cancel, so you can divide 5.2 by 52 instead of 5,200 by 52,000. Same answer, less arithmetic.
Example 2: a price hike
A product goes from $24.99 to $29.99. Step one: 29.99 - 24.99 = 5.00. Step two: 5.00 / 24.99 = 0.2001. Step three: 0.2001 x 100 = 20.01 percent, about 20 percent.
This example shows why percent increase is useful: a $5 increase sounds small, but as a share of a $25 item it is one fifth of the price. The percentage reveals the real weight of the change.
Example 3: sales growth
Monthly sales go from 320 units to 416 units. Step one: 416 - 320 = 96. Step two: 96 / 320 = 0.30. Step three: 0.30 x 100 = 30 percent. Sales grew 30 percent.
Example 4: a rent increase
Rent goes from $1,450 to $1,595. Step one: 1,595 - 1,450 = 145. Step two: 145 / 1,450 = 0.10. Step three: 0.10 x 100 = 10 percent. A clean 10 percent increase.
Mistakes that give the wrong answer
Dividing by the new value. With the salary example, dividing 5,200 by 57,200 gives 9.1 percent, which understates the raise. The denominator is always the starting value, because the question is "how much did it grow relative to where it started."
Forgetting the sign check. If the new value is smaller than the old one, the formula returns a negative number, which is a percent decrease, not an increase. A negative answer means you are in decrease territory. Our percent decrease guide covers that direction.
Adding percentages across periods. A 10 percent raise followed by another 10 percent raise is not a 20 percent total increase, because the second 10 percent applies to the already-raised salary. The true total is 21 percent (1.10 x 1.10 = 1.21). Compound, do not add.
Check your own numbers. Enter the old and new values and get the percent increase instantly, with the steps shown.
Try the free percent change calculatorPercent increase questions, answered
How do you calculate a pay raise as a percentage?
Subtract your old salary from your new salary, divide by your old salary, and multiply by 100. A raise from $52,000 to $57,200 is (57,200 - 52,000) / 52,000 x 100, which is 10 percent.
How do you calculate percent increase when the numbers are large?
Use the same formula; the size of the numbers does not change the steps. If the numbers are unwieldy, drop the trailing zeros while dividing: for 52,000 and 57,200, work with 52 and 57.2, which gives 5.2 / 52 = 0.10, or 10 percent.
Can percent increase be more than 100 percent?
Yes. A 100 percent increase doubles the starting value, and anything beyond that more than doubles it. Going from $50 to $150 is a 200 percent increase. Percent change has no upper limit.
How do you calculate percent increase over multiple years?
For the total increase, compare the final value to the original value with the same formula. For the average yearly rate, use the compound annual growth rate: (final / initial) raised to the power of (1 / years), minus 1, times 100. Do not just add up the yearly percentages.
What is the difference between percent increase and percentage points?
Percent increase measures change relative to the starting value; percentage points measure the raw difference between two percentages. A tax rate rising from 10 percent to 15 percent rose 5 percentage points, but that is a 50 percent increase relative to the starting rate.