Intermediate level

Percentages

A percentage is a hundredth of a whole. Learn percentage notation, finding a percentage of a number, recovering the whole from a known part, computing percentage change, and writing an increase or a discount as a single multiplier.

Before you start

This topic builds on earlier ideas. Before you start, it's worth working through the lessons below — they'll make everything click:

Where this is used

Real situations where you count exactly the way this lesson teaches:

  • The sales rack
    A 349 jacket at 30% off costs 349 · 0.7 = 244.30, and the promised "another 20% at the till" is not a 50% discount but 244.30 · 0.8 = 195.44 — 44% off altogether.
  • Savings
    A 12,000 deposit paying 2.8% a year earns 336 in interest, but 19% of that goes in tax, so 272.16 reaches the account — an effective 2.27% a year.
  • Retail
    A shopkeeper buys at 18 and sells at 30. The same 12 of profit is a 66.7% markup measured against the cost or a 40% margin measured against the selling price — all that changes is which figure counts as the whole.

All formulas

  • Percentage notation

    p%=p100p\% = \frac{p}{100}

    a percentage is a hundredth of a whole

  • Percentage of a number

    p% of c=p100cp\% \text{ of } c = \frac{p}{100} \cdot c

    how much p percent of the whole c is

  • Whole from a known part

    c=part÷p100c = \text{part} \div \frac{p}{100}

    given the part and its percentage, recover the whole

  • Percentage change

    Δ%=newoldold100%\Delta\% = \frac{\text{new} - \text{old}}{\text{old}} \cdot 100\%

    positive is an increase, negative is a decrease

  • Change multiplier

    new=old(1±p100)\text{new} = \text{old} \cdot \left(1 \pm \frac{p}{100}\right)

    a rise of p% multiplies by 1 + p/100, a discount by 1 − p/100

  • Two changes in a row

    new=old(1+p1100)(1+p2100)\text{new} = \text{old} \cdot \left(1 + \frac{p_1}{100}\right)\left(1 + \frac{p_2}{100}\right)

    multiply the multipliers; never add the percentages

A percentage is a hundredth of a whole — rather than writing a fraction with a fixed denominator of 100100, we use the %\% sign:

p%=p100p\% = \frac{p}{100}

For example:

25%=25100=1425\% = \frac{25}{100} = \frac{1}{4}

A percentage is simply another way of writing a fraction whose denominator is always 100100.

Percentage of a number

To find how much pp percent of a number cc is, multiply cc by the fraction p100\frac{p}{100}:

p% of c=p100cp\% \text{ of } c = \frac{p}{100} \cdot c

For example 20%20\% of 150150 is:

20100150=0.2150=30\frac{20}{100} \cdot 150 = 0.2 \cdot 150 = 30
What is 15% of 80?

Whole from a known part

Sometimes you only know a part and what percentage of the whole it represents, and you want the whole. Divide the part by the fraction the percentage represents:

If 3030 is 20%20\% of some number, the whole is:

30÷20100=30÷0.2=15030 \div \frac{20}{100} = 30 \div 0.2 = 150
45 is 30% of what number?

Percentage change

Percentage change tells you how much a value increased or decreased relative to its starting point:

Δ%=newoldold100%\Delta\% = \frac{\text{new} - \text{old}}{\text{old}} \cdot 100\%

A positive result means an increase, a negative one a decrease. A price rising from 8080 to 100100 changes by 1008080100%=25%\frac{100 - 80}{80} \cdot 100\% = 25\%.

Watch out for a common trap: a 20%20\% increase followed by a 20%20\% decrease does not return to the starting point — each percentage is taken from a different (current) base. A 20%20\% increase on 100100 gives 120120; a 20%20\% decrease on 120120 gives 9696, not 100100.

The change multiplier

An increase or a discount can be worked out in two steps ("find 15%15\%, then add or subtract it") or in one — by multiplying straight away by the change multiplier:

new=old(1±p100)\text{new} = \text{old} \cdot \left(1 \pm \frac{p}{100}\right)

The 11 is the whole you keep and p100\frac{p}{100} is the part you add or take away. A 15%15\% rise is therefore a multiplication by 1.151.15, and a 15%15\% discount a multiplication by 0.850.85:

price1.15price0.85\text{price} \cdot 1.15 \qquad \text{price} \cdot 0.85

A multiplier also reads backwards: 0.70.7 means "70%70\% of the price", that is a 30%30\% discount, and 1.081.08 is an 8%8\% rise. A price of 349349 marked down by 30%30\% is one multiplication, 3490.7=244.30349 \cdot 0.7 = 244.30, rather than a discount worked out and subtracted separately.

The real gain shows up with several changes in a row. Percentages must not be added there — multipliers may be multiplied:

new=old(1+p1100)(1+p2100)\text{new} = \text{old} \cdot \left(1 + \frac{p_1}{100}\right)\left(1 + \frac{p_2}{100}\right)

This is the one-line explanation of the trap in the previous section: a 20%20\% rise followed by a 20%20\% fall gives

1.20.8=0.961.2 \cdot 0.8 = 0.96

that is 96%96\% of the starting value — a 4%4\% drop, not a return to where you began. The product of multipliers is itself a multiplier, so the combined result reads off immediately: 30%30\% off and then another 20%20\% at the till is 0.70.8=0.560.7 \cdot 0.8 = 0.56, a combined discount of 44%44\% rather than 50%50\%.

A price rose by 25% and then fell by 12%. What is the overall change?

The same multiplier raised to a power describes a change repeated many times over — that is what compound interest is built on, and it has its own lesson, together with percentage points.

Practice

Work through a set of exercises — they get harder as you go. At the end you'll see your score and the mistakes worth reviewing.

Exercise 1 of 8Score: 0
25% × 24 =

Common mistakes

  • Confusing "percentage of a number" with "what percentage one number is of another" — these are two different questions: one multiplies, the other divides.
  • Computing percentage change from the new value instead of the old one — the denominator is always the starting value, never the ending one.
  • Assuming an increase and a decrease of the same percentage cancel out — they do not, because the base the percentage is taken from changes between the two steps.
  • Adding percentages instead of multiplying multipliers30%30\% off and another 20%20\% off is 0.70.8=0.560.7 \cdot 0.8 = 0.56, that is 44%44\%, not 50%50\%.
  • Confusing a multiplier with a percentage0.850.85 does not mean "85%85\% off", it means "85%85\% of the price", that is 15%15\% off.

Formula card

Topic: Percentages

  • Percentage notation

    p%=p100p\% = \frac{p}{100}

    a percentage is a hundredth of a whole

  • Percentage of a number

    p% of c=p100cp\% \text{ of } c = \frac{p}{100} \cdot c

    how much p percent of the whole c is

  • Whole from a known part

    c=part÷p100c = \text{part} \div \frac{p}{100}

    given the part and its percentage, recover the whole

  • Percentage change

    Δ%=newoldold100%\Delta\% = \frac{\text{new} - \text{old}}{\text{old}} \cdot 100\%

    positive is an increase, negative is a decrease

  • Change multiplier

    new=old(1±p100)\text{new} = \text{old} \cdot \left(1 \pm \frac{p}{100}\right)

    a rise of p% multiplies by 1 + p/100, a discount by 1 − p/100

  • Two changes in a row

    new=old(1+p1100)(1+p2100)\text{new} = \text{old} \cdot \left(1 + \frac{p_1}{100}\right)\left(1 + \frac{p_2}{100}\right)

    multiply the multipliers; never add the percentages

Frequently asked questions

Related articles