How To Calculate The Percentage Increase Between Two Numbers

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calculate percentage increase between two numbers

You may need to calculate percentage increase between two numbers for a variety of reasons. Maybe you want to compare the performance of two investments side-by-side, or maybe you’re trying to determine how much your salary has increased over the course of a year. Whatever the reasoning, it’s crucial to understand how to perform this computation so that you can get a precise answer.

Why Calculate Percentage Increase?

There are a number of reasons why you might need to calculate the percentage increase between two numbers. For example, you may want to: 

  • Compare the performance of two investments side-by-side
  • Determine how much your salary has increased over the course of a year
  • See if you’re on track to reach a financial goal by a certain date
  • Figure out if you’re spending more or less money than you did last month/year

How to Calculate Percentage Increase?

The formula for calculating percentage increase is relatively simple and is as follows: 

[(New Number – Old Number) / Old Number] * 100 = % Increase  

  • To break this down, let’s say that you want to calculate the percentage increase between two investments, Investment A and Investment B. 
  1. Investment A: $1,000 (Old Number) 
  2. Investment B: $1,500 (New Number) 
  • To calculate the percentage increase, you would take $1,500 (the new number) and subtract $1,000 (the old number) from it to get $500. Then, you would divide $500 (the result from Step 1) by $1,000 (the old number) to get 0.5.
  • Finally, you would multiply 0.5 by 100% to get 50%. This means that Investment B represents a 50% increase over Investment A. 

Practical usage scenarios to consider

There are a number of practical scenarios where it can be useful to calculate the percentage increase between two numbers.

  • For instance, if you are tracking the growth of your investment portfolio, you will want to know not only the absolute dollar value of your gains but also the percentage increase. This will give you a better sense of how your investments are performing relative to each other.
  • Similarly, if you are monitoring your weight loss progress, you may find it more motivating to track not only the total number of pounds lost but also the percentage of your starting weight that you have shed. In this way, you can more easily see the progress you are making and stay motivated to reach your goal.
  • Finally, calculating the percentage increase between two numbers can be helpful in negotiating raises or price discounts. When presenting your case to your boss or a potential customer, percentages can be a more persuasive way of demonstrating the value you bring to the table.
  • Whether you are tracking your own personal progress or trying to close a deal, being able to calculate percentage increases can give you an edge.

Conclusion: 

Calculating the percentage increase between two numbers can be helpful in a variety of situations. Whatever the reason, it’s important to know how to do this calculation so that you can arrive at an accurate result.