Reference · 2026-05-08

The Percentage Increase Formula, Explained

The formula for percentage increase, with worked examples and common pitfalls including the asymmetry trap.

The formula

percentage increase = (new − old) ÷ old × 100

Or equivalently: new ÷ old × 100 − 100.

Example: going from 50 to 75

(75 − 50) ÷ 50 × 100
= 25 ÷ 50 × 100
= 0.5 × 100
= 50%

A 50% increase took 50 up to 75.

Reverse direction: applying a percentage increase

new = old × (1 + P ÷ 100)

A 50% increase on 50: 50 × 1.50 = 75.

The asymmetry trap

A 50% increase followed by a 50% decrease does NOT return to the start:

50 → 75   (+50%)
75 → 37.5 (−50% from 75)

To return from 75 back to 50, you only need a 33.3% decrease. This is why percentage change is direction-sensitive.

Percentage increase vs percentage points

If something rises from 5% to 7%:

  • 2 percentage points (absolute)
  • 40% increase (relative: 2 ÷ 5 × 100)

Both are correct ways to describe the change.

FAQ

Quick answers.

(new − old) ÷ old × 100. The result is positive for increases, negative for decreases. To apply an increase, multiply by (1 + P/100).

Almost — percent change is the broader term that includes both increases (positive result) and decreases (negative result). Percentage increase is the specific case where the result is positive.

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