FAQs
Percentages can sometimes be confusing, so we've compiled a list of frequently asked questions to help clarify common doubts.
What is a Percentage?
A percentage is a way of expressing a number as a fraction of 100. It is denoted using the percent sign %.
- Example: 45% means 45 out of 100.
How Do I Calculate a Percentage of a Number?
To find X% of a number Y:
- Formula: (X/100) * Y
- Example: 20% of 50 = (20/100) * 50 = 10
How Do I Find What Percentage One Number Is of Another?
To find what percentage number A is of number B:
- Formula: (A/B) * 100%
- Example: 25 is what percent of 200? (25/200) * 100% = 12.5%
How Do I Calculate Percentage Increase or Decrease?
- Percentage Increase: ((New Value - Original Value) / Original Value) * 100%
- Percentage Decrease: ((Original Value - New Value) / Original Value) * 100%
Example (Increase): Price increases from $50 to $65.
- ((65 - 50) / 50) * 100% = 30% increase
Example (Decrease): Price decreases from $80 to $60.
- ((80 - 60) / 80) * 100% = 25% decrease
What Is Compound Interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods.
- Formula: A = P(1 + r/n)^(nt)
- Variables:
- A = the future value
- P = principal amount
- r = annual interest rate (decimal)
- n = number of times interest is compounded per year
- t = time in years
How Do I Convert a Decimal to a Percentage?
Multiply the decimal by 100 and add a percent sign.
- Example: 0.75 * 100% = 75%
How Do I Convert a Fraction to a Percentage?
Divide the numerator by the denominator and multiply by 100%.
- Example: (3/4) * 100% = 75%
What Is a Percentage Point?
A percentage point is the unit for the arithmetic difference of two percentages.
- Example: An increase from 10% to 12% is a 2 percentage point increase.
Is There a Difference Between Percentage Change and Percentage Point Change?
Yes. Percentage change refers to the relative change, while percentage point change refers to the absolute difference between two percentages.
- Example: From 10% to 12%:
- Percentage Point Change: 2 percentage points
- Percentage Change: ((12% - 10%) / 10%) * 100% = 20% increase
How Do Sales Taxes Work?
Sales tax is calculated as a percentage of the purchase price.
- Example: If the sales tax rate is 7% and the item costs $100, tax is $7.
If you have more questions, feel free to use our Percentage Calculator to explore different calculations or contact us for further assistance.