Solve every common percentage question: of, increase, decrease and difference.
A percentage expresses a number as a fraction of 100. To find X% of Y, multiply Y by X/100. To find what percent X is of Y, divide X by Y and multiply by 100.
X% of Y
X% of Y = (X ÷ 100) × Y
X is what percent of Y
Percentage = (X ÷ Y) × 100
Almost every percentage problem is one of these, and they are easy to confuse:
0.15 × 80 = 12.12 ÷ 80 = 15%.From 80 to 92 is (92 − 80) ÷ 80 = 15%.
The third is where most mistakes happen, because it matters which number is the starting point.
This trips up almost everyone. A price that falls 50% and then rises 50% does not return to where it started:
The reason is that each percentage is taken of a different base. To undo a 50% fall you need a 100% rise. Generally, to reverse a drop of *p*, you need a rise of p ÷ (1 − p).
A rate moving from 4% to 6% has risen 2 percentage points, which is a 50% increase. Both statements are true and they mean different things. Financial and political reporting routinely conflates them, and the difference is often the entire story.
If a price is £96 *after* a 20% discount, the original was not £96 × 1.20. The £96 represents 80% of the original, so:
original = 96 ÷ 0.80 = £120
The same logic recovers a pre-tax figure from a tax-inclusive one — divide by 1 + rate, never multiply. This is the single most common percentage error in everyday finance.
Successive percentages multiply rather than add. Three consecutive 10% rises give 1.10³ = 1.331, a 33.1% increase, not 30%. Over long periods this gap becomes the dominant effect, which is the whole basis of compound interest.
a% of balways equals b% of a.
Subtract the old value from the new value, divide by the old value, then multiply by 100. A rise from 200 to 230 is (30/200)×100 = 15%.
Multiply 200 by 0.15 to get 30. You can also say 30 out of 200 equals 15%.