How to Calculate Percentage Increase

Tracking growth is essential in personal finance, business operations, and economic analysis. When your rent increases, your hourly wage rises, or a company's quarterly revenue climbs, describing that change in raw dollars only tells part of the story. Measuring the percentage increase provides vital context by showing how much the value expanded relative to where it started.

The Percentage Increase Formula

To compute percentage growth between an original starting value and a new higher value, use the following formula:

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

Alternatively, you can think of it as:

Percentage Increase = (Absolute Increase ÷ Original Value) × 100

Step-by-Step Calculation Walkthrough

Example: Evaluating a Salary Increase

Consider an employee whose hourly pay increases from $24.00 to $27.00. What is the percentage increase of this wage adjustment?

1. Find the absolute increase: Subtract the original wage from the new wage.
   $27.00 - $24.00 = $3.00 raise.
2. Divide by original baseline: Divide the $3.00 raise by the starting wage of $24.00.
   3.00 ÷ 24.00 = 0.125.
3. Convert to a percentage: Multiply by 100.
   0.125 × 100 = 12.5%.

The worker received a 12.5% pay increase.

Why You Must Divide by the Original Value

A frequent mistake in percentage math is dividing the difference by the new value rather than the original value. In our salary example, dividing $3.00 by $27.00 would give 11.1%. That 11.1% represents what portion the raise is of the new wage, but it does not measure the growth rate from the starting point.

Growth is always anchored to the baseline where you began. Always place the original starting value in the denominator.

Calculate Growth Online

To calculate growth rates effortlessly for any two figures, try our dedicated Percentage Increase Calculator on Clearver Tools.