# How to Calculate Percentage of Increase

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.

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1. ## Instructions

• 1

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

• 2

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

• 3

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

• 4

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

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• Photo Credit percent icon image by Dmitri MIkitenko from Fotolia.com