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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?

Result=X100×Y\text{Result} = \frac{X}{100} \times Y

Example: What is 20% of 150?

20100×150=30\frac{20}{100} \times 150 = 30

2. Determine what percentage one number (X) is of another (Y)?

Percentage=(XY)×100%\text{Percentage} = \left( \frac{X}{Y} \right) \times 100\%

Example: 45 is what percentage of 180?

(45180)×100%=25%\left( \frac{45}{180} \right) \times 100\% = 25\%

3. Increase a number (Y) by a certain percentage (X)

New Value=Y+(X100×Y)=Y×(1+X100)\text{New Value} = Y + \left( \frac{X}{100} \times Y \right) = Y \times \left(1 + \frac{X}{100}\right)

Example: Add 15% to 200.

200×1.15=230200 \times 1.15 = 230

4. Decrease a number (Y) by a certain percentage (X)

New Value=Y(X100×Y)=Y×(1X100)\text{New Value} = Y - \left( \frac{X}{100} \times Y \right) = Y \times \left(1 - \frac{X}{100}\right)

Example: Subtract 30% from 500.

500×0.70=350500 \times 0.70 = 350

5. By what percentage is one number (X) greater than another (Y)?

Increase %=(XYY)×100%\text{Increase \%} = \left( \frac{X - Y}{Y} \right) \times 100\%

Example: 75 is what percentage greater than 50?

(755050)×100%=50%\left( \frac{75 - 50}{50} \right) \times 100\% = 50\%

6. By what percentage is one number (X) less than another (Y)?

Decrease %=(YXY)×100%\text{Decrease \%} = \left( \frac{Y - X}{Y} \right) \times 100\%

Example: 30 is what percentage less than 60?

(603060)×100%=50%\left( \frac{60 - 30}{60} \right) \times 100\% = 50\%

7. Find the original number if a certain percentage (X) is equal to another number (Y)

Original Number=YX×100\text{Original Number} = \frac{Y}{X} \times 100

Example: If 40% of a number is 80, what is the original number?

8040×100=200\frac{80}{40} \times 100 = 200

8. Percentage change between two values

Change %=(New ValueOriginal ValueOriginal Value)×100%\text{Change \%} = \left( \frac{\text{New Value} - \text{Original Value}}{\text{Original Value}} \right) \times 100\%

Example: A stock price rises from $50 to $65. What is the percentage change?

(655050)×100%=30%\left( \frac{65 - 50}{50} \right) \times 100\% = 30\%

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

  1. Misplacing decimal points: Always divide percentages by 100 before calculating.
    Incorrect: 20% of 50 = 20×5020 \times 50.
    Correct: 0.20×50=100.20 \times 50 = 10.

  2. Confusing percentage increase/decrease: Ensure the denominator is the original value, not the new one.
    Example: If a price drops from $200 to $150:

    (200150200)×100%=25% decrease.\left( \frac{200 - 150}{200} \right) \times 100\% = 25\% \text{ decrease}.
  3. 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?

Tip=45×20100=9Total=45+9=$54\text{Tip} = 45 \times \frac{20}{100} = 9 \quad \text{Total} = 45 + 9 = \$54

If a product’s price increases from $80 to $100, what is the percentage increase?

(1008080)×100%=25%\left( \frac{100 - 80}{80} \right) \times 100\% = 25\%

A population decreases from 5,000 to 4,500. What is the percentage decrease?

(500045005000)×100%=10%\left( \frac{5000 - 4500}{5000} \right) \times 100\% = 10\%

How much is 150% of 80?

150100×80=120\frac{150}{100} \times 80 = 120

After a 30% discount, a jacket costs $70. What was its original price?

Original Price=7010.30=700.70=$100\text{Original Price} = \frac{70}{1 - 0.30} = \frac{70}{0.70} = \$100

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: 1000×(1.05)3$1157.631000 \times (1.05)^3 \approx \$1157.63
  • 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.

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