Note your starting number. For example, in the first six months of last year, you spent $5,000 on advertising.
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.
Things You'll Need
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.
- Compare your company's percentages with those of other businesses in your industry to better understand your competition.
- Photo Credit percent icon image by Dmitri MIkitenko from Fotolia.com
How to Calculate Percentage Increase in Sales
When you operate a business, one way to measure success is to determine whether sales are increasing or decreasing by examining the...
How to Increase a Number by a Percentage
Some word problems in math class will ask you to increase a number by a percentage. Or, even in day to day...
How to Calculate Cost Increase by a Percent
Due to inflation and other factors, prices of goods rise. In a business, you need to know the size of the cost...
How to Calculate Growth Rate or Percent Change
To further calculate an annual percentage rate of change, ... Formula to Calculate the Rate of Growth. ... Calculating this rate reveals...
How to Find the Percent of Increase in Graphs
People use graphs to visually display data. Common types of graphs include bar graphs and line graphs. A graph, however, can make...
How to Write Percentage Formulas in Excel
Calculate the percent of a total. ... How to Find Percent Formula. Percentages represent the portion of 100 outcomes that are successful...
How to Show a Percentage Increase Between Two Numbers
The percentage increase from 22 to 57 is 159 percent. Tips & Warnings. See the Resources section for an online percentage increase...
How to Calculate a .25% Increase
Calculating percentages can be a constant source of confusion if you are not comfortable with applying mathematics in real life. Calculating increases...