# How to Calculate Percentage of Increase

Save

Calculating percentage increases and decreases enables a business owner to keep expenditures in line with income. Nothing paints a quicker picture of your financial health than looking at past and present earnings and expenditures, and nothing shows that more clearly than percentages.

• Calculator

## Instructions

• Note your starting number. For example, in the first six months of last year, you spent \$5,000 on advertising.

• Compute the number for that same category in current dollars. This year, your advertising expenditures for that same period are \$5,500.

• Subtract the old number from the new number. In this case, \$5,500 minus \$5,000. You had an increase of \$500.

• Divide the increase (\$500) by the original starting number (\$5,000). The resulting decimal, 0.10 or 10 percent , is the percentage increase from last year to this year. The same formula applies to decreases.

## Tips & Warnings

• Use the percentage of increase to evaluate gross margins, cost of goods sold, total revenue and other financial ratios to stay abreast of your company's financial well-being.
• Photo Credit percent icon image by Dmitri MIkitenko from Fotolia.com
Promoted By Zergnet

## Related Searches

Check It Out

### Can You Take Advantage Of Student Loan Forgiveness?

M
Is DIY in your DNA? Become part of our maker community.