What is a percentage?
A percentage represents a fraction of 100. Derived from the Latin term per centum (“by the hundred”), it is denoted using the symbol %. Percentages simplify comparisons by standardizing values relative to a whole. For example, saying “25%” is equivalent to stating “25 out of every 100 units.”
Key formulas for percentage calculations
1. What percentage of Y is X?
Example: What is 20% of 150?
2. Determine what percentage one number (X) is of another (Y)?
Example: 45 is what percentage of 180?
3. Increase a number (Y) by a certain percentage (X)
Example: Add 15% to 200.
4. Decrease a number (Y) by a certain percentage (X)
Example: Subtract 30% from 500.
5. By what percentage is one number (X) greater than another (Y)?
Example: 75 is what percentage greater than 50?
6. By what percentage is one number (X) less than another (Y)?
Example: 30 is what percentage less than 60?
7. Find the original number if a certain percentage (X) is equal to another number (Y)
Example: If 40% of a number is 80, what is the original number?
8. Percentage change between two values
Example: A stock price rises from $50 to $65. What is the percentage change?
Historical context
Percentages date back to ancient civilizations. Roman tax calculations used fractions of 100, while medieval merchants applied percentage-based profit margins. The symbol ”%” evolved from the Italian per cento abbreviation “p.c.” in the 15th century.
Common mistakes and how to avoid them
-
Misplacing decimal points: Always divide percentages by 100 before calculating.
Incorrect: 20% of 50 = .
Correct: . -
Confusing percentage increase/decrease: Ensure the denominator is the original value, not the new one.
Example: If a price drops from $200 to $150: -
Forgetting units: Label results with ”%” to avoid ambiguity.
Applications in daily life
- Budgeting: Calculate sales tax (e.g., 7% on a $1,000 purchase = $70).
- Fitness: Track weight loss (e.g., losing 5% of body weight).
- Education: Determine exam scores (e.g., 85% correct answers).
- Investing: Analyze returns (e.g., a 12% annual gain on $10,000 = $1,200).
Frequently Asked Questions
How to calculate a 20% tip on a $45 restaurant bill?
If a product’s price increases from $80 to $100, what is the percentage increase?
A population decreases from 5,000 to 4,500. What is the percentage decrease?
How much is 150% of 80?
After a 30% discount, a jacket costs $70. What was its original price?
Notes
- Percentages greater than 100% represent values exceeding the original amount.
- Negative percentage changes indicate a decrease.
- Use parentheses in formulas to ensure correct order of operations.
Advanced scenarios
- Compound interest: Combine percentage growth over multiple periods.
Example: $1,000 at 5% annual interest for 3 years: - Statistical analysis: Use percentages to compare demographic data (e.g., 60% of survey respondents prefer Option A).
For compound interest calculations, use our compound interest calculator.