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Percent increase and decrease: calculate the final value

About 5 min

Questions stay in the language in which they were published.

These questions ask for a final value after a starting amount rises or falls by a stated percentage. Some also ask you to recognise calculations that produce the same final value.

Turn the percentage change into a multiplier

Treat the starting value as the whole, or 100%. For an increase of p%, the final value is 100% + p% of the start, so use the multiplier 1 + p/100. For a decrease, 100% - p% remains, so use 1 - p/100. Multiply the starting value by the appropriate multiplier.

Signal in the questionCalculation for the final value
Increase by p%Start x (1 + p/100)
Decrease by p%Start x (1 - p/100)
Find the change firstStart x p/100, then add it for an increase or subtract it for a decrease

For an increase example, suppose 250 grows by 16%. The multiplier is 1.16, so the final value is 250 x 1.16 = 290. The two-step route agrees: 16% of 250 is 40, then 250 + 40 = 290.

For a decrease example, suppose 160 is reduced by 30%. This leaves 70%, so use 0.70: 160 x 0.70 = 112. Equivalently, the amount removed is 160 x 0.30 = 48, and 160 - 48 = 112. A quick direction check helps: an increased result must be above the start, while a decreased result must be below it.

Avoid these traps

Tempting routeHow to reject it
Multiply by p/100 and stop when the final value is requiredThat product is only the amount added or removed. Keep the original whole by using 1 + p/100 or 1 - p/100, or combine the change with the start.
Add or subtract the percentage number as a fixed amountA percentage is a rate of the starting value, not a fixed number of units. First calculate start x p/100; only that product is the amount to add or subtract.
Move in the wrong directionWords such as increase and raise require a result above the start; decrease, reduce and less require one below it. Check the direction before trusting the arithmetic.

When several calculations are shown, test each one against the same structure instead of judging by appearance. A one-step multiplier and a two-step change calculation can both be correct if they preserve the starting whole and move in the stated direction.

Try it

Question 37

A workshop raises its weekly output of 240 units by 15%. Enter the new number of units.

Question 41

Which calculation does NOT correctly increase 140 by 15%?

  1. 140 x 1.15
  2. 140 + 15
  3. 140 + 0.15 x 140
  4. 140 + 21
Question 46

A monthly phone plan costing 85 dollars increases by 8%. Enter the new amount in dollars.

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Percent increase and decrease: calculate the final value · Questena