Percentage Increase Formula

Percentage increase measures how much a value has grown compared to its original value, expressed as a percentage of the original. It tells you not just how much something changed — but how significant that change is relative to where it started.

For example, if the price of a product goes from ₹100 to ₹120, the increase in amount is ₹20. But the percentage increase tells us that this ₹20 rise is actually a 20% jump from the original price.

Percentage increase is used everywhere — salary appraisals, stock market returns, school marks improvement, business revenue growth, inflation tracking, and population studies.

The standard formula for percentage increase is:

Percentage Increase = ((New Value − Original Value) ÷ Original Value) × 100

Breaking it down: (New Value − Original Value) gives you the actual increase in amount. Dividing by the Original Value converts it into a ratio. Multiplying by 100 turns that ratio into a percentage.

Important: Always divide by the Original Value (not the new value). The original is your reference point — the base from which growth is being measured.

Step 1 — Find the increase: Subtract the original value from the new value. Increase = New Value − Original Value.

Step 2 — Divide by the original: Divide the increase by the original value. This gives you the ratio of change.

Step 3 — Convert to percentage: Multiply the result by 100. This is your percentage increase.

That's it — three steps every time, no matter how complex the numbers look.

Example 1 — Price Rise: A smartphone costs ₹20,000 and its price increases to ₹24,000. Increase = ₹4,000. Percentage Increase = (4000 ÷ 20000) × 100 = 20%. The price rose by 20%.

Example 2 — Salary Hike: An employee earns ₹30,000 per month and gets a raise to ₹36,000. Increase = ₹6,000. Percentage Increase = (6000 ÷ 30000) × 100 = 20%. The salary increased by 20%.

Example 3 — Marks Improvement: A student scored 60 marks in the first test and 75 marks in the second. Increase = 15. Percentage Increase = (15 ÷ 60) × 100 = 25%. Performance improved by 25%.

Example 4 — Business Revenue: A shop earned ₹1,50,000 last month and ₹1,80,000 this month. Increase = ₹30,000. Percentage Increase = (30000 ÷ 150000) × 100 = 20%. Revenue grew by 20%.

Example 5 — Population Growth: A city had a population of 5,00,000 in 2020 and 5,75,000 in 2025. Increase = 75,000. Percentage Increase = (75000 ÷ 500000) × 100 = 15%. Population grew by 15% in 5 years.

Salary hike percentage is one of the most searched uses of the percentage increase formula in India.

Formula: Salary Hike % = ((New Salary − Old Salary) ÷ Old Salary) × 100

Example 1: Old salary ₹25,000 → New salary ₹30,000. Hike = (5000 ÷ 25000) × 100 = 20%.

Example 2: Old salary ₹50,000 → New salary ₹58,000. Hike = (8000 ÷ 50000) × 100 = 16%.

Tip: If your company says '15% hike', you can find your new salary using: New Salary = Old Salary × (1 + 15/100) = Old Salary × 1.15.

Students and parents frequently use percentage increase to track academic improvement between exams or academic years.

Formula: Marks Increase % = ((New Marks − Old Marks) ÷ Old Marks) × 100

Example: Rohan scored 65% in Term 1 and 78% in Term 2. Increase = 13. Percentage Increase = (13 ÷ 65) × 100 = 20%. His score improved by 20%.

Note: Be careful — a jump from 65% to 78% is not simply 13% improvement. It is a 20% improvement relative to the original score of 65%.

In business, percentage increase is used to measure revenue growth, profit growth, customer base growth, and product demand.

Revenue Growth %: If quarterly revenue grew from ₹10 lakh to ₹13 lakh — Growth = (3 ÷ 10) × 100 = 30%.

Investment Return: If you invested ₹50,000 and it grew to ₹65,000 — Return = (15000 ÷ 50000) × 100 = 30% return.

Inflation: If a grocery bill was ₹2,000 last year and is ₹2,300 this year — Inflation impact = (300 ÷ 2000) × 100 = 15%.

Tracking these numbers helps businesses spot growth trends, compare performance year-on-year, and make better planning decisions.

Mistake 1 — Dividing by the New Value: Always divide by the Original Value, not the new one. Using the new value gives a wrong and lower percentage.

Mistake 2 — Forgetting to multiply by 100: After dividing, the result is a decimal ratio. Multiplying by 100 converts it to a percentage. Skipping this step gives 0.20 instead of 20%.

Mistake 3 — Confusing amount increase with percentage increase: A ₹500 price rise on a ₹1,000 product (50% increase) is very different from a ₹500 rise on a ₹10,000 product (5% increase). Always calculate relative to original.

Mistake 4 — Using percentage increase when decrease is needed: If the new value is less than the original, the result is a percentage decrease, not an increase. Use the correct formula for each situation.

Trick 1 — Find new value directly: New Value = Original Value × (1 + Percentage Increase ÷ 100). Example: 20% increase on ₹500 → 500 × 1.20 = ₹600.

Trick 2 — Double check mentally: For a 10% increase, add 1/10th of the original. For 25% increase, add 1/4th. For 50% increase, add half the original.

Trick 3 — Reverse calculation (find original): If the new value and percentage increase are known — Original = New Value ÷ (1 + Percentage ÷ 100). Example: New price is ₹1,200 after a 20% increase. Original = 1200 ÷ 1.20 = ₹1,000.

Trick 4 — Quick mental math: 15% increase = 10% + 5% of original. On ₹400 → 40 + 20 = ₹60 increase. New value = ₹460.

Percentage Increase is used when the new value is greater than the original value — for example, a price rise, salary hike, or marks improvement.

Percentage Decrease is used when the new value is less than the original — for example, a price drop, weight loss, or sales decline.

Percentage Increase Formula: ((New − Original) ÷ Original) × 100

Percentage Decrease Formula: ((Original − New) ÷ Original) × 100

Both formulas use the Original Value as the base. The only difference is which value is subtracted from which.

Salary & HR: Calculating annual appraisal hike percentages for employees.

Stock Market: Measuring how much a stock's price has risen from its purchase price.

Education: Tracking improvement in test scores, attendance, or results.

E-commerce: Showing how much demand or sales volume increased during a sale period.

Government & Economy: Reporting GDP growth rate, inflation rate, and tax collection growth.

Health & Fitness: Measuring increase in stamina, muscle weight, or calorie burn over time.

Real Estate: Calculating property value appreciation over years.

Understanding and applying the percentage increase formula gives you a clear, objective way to measure and communicate growth in any field.