Calculating Percentage Increases

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Part of the video series: Business Accounting

Summary: Calculating percentage increase can be done by dividing the dollar amount of change that occurred by the base amount, which should result in a percentage of growth. Find out how much an amount has increased with information from a certified public accountant in this free video on accounting.

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By Miranda Chook
eHow Presenter

Miranda Chook is a CPA with expertise in international operations. She has held executive positions with both publicly listed and privately held companies. In addition to her finance...read more

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Video Transcript

"My name is Miranda Chook, a CPA. Whether you do the calculation in your head, on Excel, or a calculator, you'll first calculate the change, dollar change, you're interested in and then take that change and divide it by the base amount to calculate a percentage change, or percentage increase that you're trying to calculate. For example, if you had a million dollars in sales last month, and you had a million-two in sales this month and you want to know what the percentage increase is, first you take the the dollar change, which is two-hundred thousand dollars. Take that two-hundred thousand and then divide it by the million dollars which is your, what we'll call your base amount, your prior periods amount. So two-hundred thousand, divided by your million dollars will give you twenty percent, or your percentage increase."