# How to Calculate Percent Increase: A Simple Formula and Examples
Have you ever looked at a bill and thought, "How much did this actually go up?" Or maybe you're tracking a personal goal, like your running distance, and want to see your progress in percentage terms. Understanding percent increase is a practical life skill, and the good news is, it's easier than you think.
In this simple guide, we'll break down the percent increase formula step-by-step, walk through clear examples, and show you how to apply it in everyday situations.
What Exactly is Percent Increase?
Percent increase measures how much a value has grown over time, expressed as a percentage of the original value. It tells you the relative change, not just the raw difference. For example, a $1 increase on a $2 coffee is a massive 50% increase, but a $1 increase on a $1,000 laptop is a tiny 0.1% increase. The context, provided by the original number, is key!
The Percent Increase Formula: Step-by-Step
The formula for calculating percent increase is straightforward. All you need are two numbers: the original (or old) value and the new (or final) value.
The formula is: Percent Increase = [(New Value - Old Value) / Old Value] x 100
Let's break that down into three easy steps:
- Step 1: Find the Difference. Subtract the old value from the new value. This gives you the raw amount of the increase.
- Step 2: Divide by the Original. Take the result from Step 1 and divide it by the original (old) value. This gives you the increase as a decimal.
- Step 3: Convert to a Percentage. Multiply the result from Step 2 by 100 to get the final percentage increase.
A Practical Example: Your Rent Went Up
Let's say your rent last year was $1,500 per month. This year, your landlord increased it to $1,620 per month. What is the percent increase? Let's use our steps.
- Step 1: Find the Difference.
$1,620 (New Value) - $1,500 (Old Value) = $120 - Step 2: Divide by the Original.
$120 / $1,500 (Old Value) = 0.08 - Step 3: Convert to a Percentage.
0.08 x 100 = 8%
So, your rent increased by 8%.
The Easiest Way to Calculate Percent Increase
Doing the math by hand is a great way to understand the concept. But sometimes, you just need a fast, reliable answer without worrying about formulas or decimal places. For those moments, you can skip the manual steps and get an instant result.
For the quickest calculations, simply plug your numbers into our free percentage calculator. It's perfect for checking your work or when you're in a hurry.
Common Uses for the Percent Increase Formula
You'll find this formula useful in many areas of life, including:
- Finance: Calculating the growth of an investment or the increase in a stock's price.
- Business: Measuring the growth in sales, website traffic, or customer numbers from one quarter to the next.
- Personal Finance: Understanding increases in your salary, bills, or the cost of groceries.
- Health & Fitness: Tracking your progress, like the increase in the weight you can lift or the distance you can run.
You've Mastered the Formula!
And there you have it! The percent increase formula is a powerful tool for making sense of changing numbers. By remembering the simple logic—find the difference, divide by the original, and multiply by 100—you can confidently figure out any percentage increase that comes your way.