Are you smarter than a 5th grader?

Calculating a percentage increase

Because there are some people out there that want to calculate a percentage increase (or reduction).
It’s really quite simple and I know your math teacher taught you!

Here’s an example:            
Gas goes from $2.50 to $5.00 per gallon.  Is it a:

·         50% increase
·         100% increase
·         Double (200% increase)
·         None of the above

Answer:           100% increase.

Method 1:           
Step 1: (New Price – Old Price)/Old Price = Percentage Change
Step 2: Multiply by 100 in case you need to change a percentage number to a whole number.

Method 2: New Price/(Old Price -1) x 100 = Percentage Increase

Calculating to a specific targeted percentage reduction

If gas is $4.00 per gallon and goes down 25%.
What would the new price be?

  • $3.00 per gallon
  • $3.25 per gallon
  •  $3.50 per gallon
  • None of the above

Answer:           $3.25 per gallon

Method 1:

Current Price – (1 – %Change) = New Price


$4.00 – (1-.20) = $3.25

Don’t get confused. It’s all logical.

And if you continue to have a problem remembering, ask a 5th grader!


Why does it matter?

Because IT matters!

1 thought on “Calculating a Percentage Increase

  1. I can relate to this ! , I’ve heard some goody things about this blog ! I bookmarked it on my favorites and will visit it again for more interesting posts like this one, Thanks

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