What Is a Percentage?
A percentage is a way of expressing a number as a fraction of 100. The word comes from the Latin per centum, meaning “out of a hundred.” When you say 25%, you mean 25 out of every 100 — or equivalently, one quarter of any total.
Percentages appear everywhere: discounts, interest rates, exam scores, battery levels, and statistics all rely on percentage notation because it provides an instantly comparable scale regardless of the underlying quantity.
The Three Core Percentage Calculations
1. Finding a Percentage of a Number
Formula: Result = (Percentage ÷ 100) × Number
Example: What is 18% of 250? 18 ÷ 100 = 0.18 → 0.18 × 250 = 45
This is the most common type: calculating a tip, a discount amount, a tax, or a commission.
2. Finding What Percentage One Number Is of Another
Formula: Percentage = (Part ÷ Whole) × 100
Example: What percentage is 45 out of 180? (45 ÷ 180) × 100 = 25%
Use this when you want to express a score, a share, or a ratio as a percentage. Getting 36 out of 40 questions right is (36 ÷ 40) × 100 = 90%.
3. Percentage Change (Increase or Decrease)
Formula: Change = ((New Value − Old Value) ÷ |Old Value|) × 100
A positive result means an increase; a negative result means a decrease.
Examples:
- Sales grew from 400 to 500 units: ((500 − 400) ÷ 400) × 100 = 25% increase
- Temperature fell from 20°C to 15°C: ((15 − 20) ÷ 20) × 100 = 25% decrease
Practical Examples
| Situation | Calculation | Result |
|---|---|---|
| 20% off a $60 item | 0.20 × 60 | $12 discount |
| Scored 42 out of 50 | (42 ÷ 50) × 100 | 84% |
| Salary raised from $50k to $55k | ((55k − 50k) ÷ 50k) × 100 | 10% increase |
| Stock fell from $80 to $64 | ((64 − 80) ÷ 80) × 100 | 20% decrease |
| Population tripled from 1,000 to 3,000 | ((3,000 − 1,000) ÷ 1,000) × 100 | 200% increase |
Percentage vs. Percentage Points
These two terms are frequently confused.
Percentage points measure an absolute difference between two percentages. If an interest rate rises from 3% to 5%, that is a 2 percentage-point increase.
Percentage change measures a relative difference. That same rise from 3% to 5% is a 66.7% increase (because 2 ÷ 3 × 100 ≈ 66.7%).
News reports often say “the rate rose by 2%” when they mean 2 percentage points — which can significantly understate the relative change.
How to Reverse a Percentage
If you know a value after a percentage was applied and want to find the original, divide by the multiplier:
- After an increase of P%: Original = Result ÷ (1 + P/100)
- After a decrease of P%: Original = Result ÷ (1 − P/100)
Example: A jacket costs $130 after a 30% markup. What was the original price? 130 ÷ 1.30 = $100
Example: A discounted price of $85 reflects a 15% discount. What was the original? 85 ÷ (1 − 0.15) = 85 ÷ 0.85 = $100