How Percentage Calculations Work
A percentage is a way of expressing a number as a fraction of 100. The word percent literally means "per hundred." Most everyday percentage problems fall into one of three categories, and this calculator covers all three.
1. Finding a Percentage of a Number
When you want to find a portion — like 15% of a $200 bill, 8% sales tax on a $35 purchase, or a 5% raise on your salary — multiply the number by the percentage and divide by 100. The formula is result = (number × percent) / 100. Quick mental trick: 10% is just the number with the decimal moved one place left.
2. Working Out What Percentage One Number Is of Another
Use this when you have a part and a whole and want to know the ratio as a percentage. Test score 47 out of 50? Sales of $1,250 against a $5,000 quota? The formula is percent = (part / whole) × 100. The answer can be greater than 100% if the part is larger than the whole.
3. Percentage Change Between Two Values
Percentage change measures how much something has grown or shrunk relative to the starting value. The formula is percent change = ((new − old) / old) × 100. A positive result is an increase, a negative result is a decrease. Used for stock returns, year-over-year growth, price markdowns, and inflation.
Common Real-World Uses
- Tax and tip: Find the dollar amount of a percentage applied to a bill.
- Discounts and sales: Calculate the final price after a percentage off (see also the Discount Calculator).
- Grades and scores: Convert raw scores into percentage grades.
- Growth and decline: Compare two periods to see year-over-year, quarter-over-quarter, or week-over-week change.
- Investing: Compute returns as a percent of the original investment.