How to calculate a percentage increase
Subtract the old value from the new one, divide by the old value and multiply by 100. Rent going from $1,400 to $1,512 is (1,512 − 1,400) ÷ 1,400 × 100 = 8%.
An hourly pay rise from $18 to $19.50 is a 8.33% raise.
How to apply a raise
Multiply by (1 + raise ÷ 100). A $52,000 salary with a 3% raise becomes 52,000 × 1.03 = $53,560.
To know if a raise beats inflation, compare it with the CPI change over the same year.
Worked examples
| Question | Calculation | Working | Result |
|---|---|---|---|
| Price increase from 3.49 to 3.99 | Percentage increase from X to Y | (3.99 − 3.49) ÷ 3.49 × 100 | 14.33% |
| Salary of 52,000 with a 3% raise | Add X% to Y | 52,000 × 1.03 | 53,560 |
| My pay went from 18 to 19.50 an hour, what percent raise? | Percentage increase from X to Y | (19.50 − 18) ÷ 18 × 100 | 8.33% |
Frequently asked questions
How do I combine two increases?
Multiply the factors: 5% and then 3% is 1.05 × 1.03 = 1.0815, an 8.15% increase in total, not 8%.
Is a 10% increase followed by a 10% decrease zero?
No. 100 becomes 110, and 10% off 110 is 99, so you end 1% lower.
What is the difference between percent and percentage points?
A rate going from 4% to 5% rose 1 percentage point, which is a 25% increase in the rate itself.
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