How to Calculate Percent Increases Per Year
Percentage increase is a figure that is often used in business finance to describe the financial performance of a product. Understanding percentage increase in areas such as sales is crucial to evaluating the overall success of a business. Yearly evaluations of percentage increase can help a company to budget, plan and possibly make revisions for the upcoming year.
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Instructions
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1
Analyze financial records to show activities over the previous year.
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Compare a current figure with a similar figure from the one year ago. For instance, a company may have made $50,000 from selling a particular product in April of one year and $75,000 selling that same product in April of the next year.
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In the example, subtract $50,000 from $75,000, which yields $25,000.
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4
Divide $25,000 by $75,000, and the result is 0.33.
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Multiply your answer from Step 4 by 100 to obtain the percentage increase for the year. Thus, 0.33 times 100 equals 33, so the increase would be 33 percent.
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