Understanding Percentages: A Complete Guide
Master the art of percentage calculations with our comprehensive guide and calculator
Introduction to Percentages
A percentage is a way to express a number as a fraction of 100. It is commonly used in finance, mathematics, statistics, and real-life calculations, such as discounts, tax rates, and interest rates.
Basic Example
50% means 50 out of 100, or ½ in fraction form
Basic Formula
Percentage = (Part ÷ Total) × 100
Common Percentage Calculations
| Calculation Type | Formula | Example |
|---|---|---|
| Basic Percentage | (Part ÷ Total) × 100 | 20% of 300 = 60 |
| Percentage Increase | ((New - Old) ÷ Old) × 100 | 50 to 75 = 50% increase |
| Percentage Decrease | ((Old - New) ÷ Old) × 100 | 2000 to 1800 = 10% decrease |
Real-Life Applications
🛍️ Shopping & Discounts
- • Calculate sale prices
- • Compare discounts
- • Budget planning
📈 Finance & Investment
- • Interest rates
- • Investment returns
- • Tax calculations
📊 Business Analytics
- • Growth rates
- • Market share
- • Performance metrics
Quick Tips & Conversions
Decimal to Percentage
0.75 → 75%
0.25 → 25%
Multiply by 100 to convert
Fraction to Percentage
½ → 50%
¼ → 25%
Divide and multiply by 100
Frequently Asked Questions
How do I calculate a percentage increase?
To calculate a percentage increase, subtract the original number from the new number, divide by the original number, and multiply by 100. For example, if a price increases from $100 to $150, the calculation would be: ((150 - 100) ÷ 100) × 100 = 50% increase.
How do I calculate a discount?
To calculate a discounted price, multiply the original price by (1 - discount percentage as decimal). For example, for a 20% discount on $100: $100 × (1 - 0.20) = $80.
What is the difference between percentage points and percentages?
A percentage point is the arithmetic difference between two percentages. For example, if an interest rate increases from 10% to 15%, that's a 5 percentage point increase, but a 50% relative increase.
Ready to Calculate?
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