How to calculate percentage increase
Percentage change = ((new − old) ÷ |old|) × 100. A positive result is an increase; a negative result is a decrease.
Example
Price went from 40 to 50. Change = (50 − 40) ÷ 40 × 100 = 25%. That is a 25% increase.
Common mistakes
- Dividing by the new value instead of the old value.
- Forgetting absolute value when the old value is negative (finance contexts).