Subtract the final value from the starting value, divide by the starting value, multiply by 100. The formula, worked examples and the mistakes that catch people out.
Frequently asked questions
How do you calculate percentage decrease?
Subtract the final value from the starting value, divide that by the starting value, then multiply by 100. For a fall from 750 to 590 the difference is 160, 160 ÷ 750 = 0.2133, and the percentage decrease is 21.33%. Always divide by the starting value, never the final one, and keep both numbers in the same unit.
How do you find the original price before a percentage decrease?
Divide the reduced price by the share that is left, written as a decimal. If a coat costs £60 after 25% off, 75% is left, so the original price is £60 ÷ 0.75 = £80. Adding 25% back onto £60 gives £75, which is wrong because 25% of the sale price is a smaller amount than 25% of the original.
What is the difference between a percentage decrease and a percentage point decrease?
A percentage decrease compares the fall with where the value started. A percentage point decrease is just one percentage subtracted from another. A rate that drops from 5% to 4% has fallen by 1 percentage point, but that is a 20% decrease, because 1 is a fifth of 5. Both statements are true, so say which one you mean.
Do two percentage decreases add together?
No. The second decrease is taken from the smaller amount the first one leaves. A 20% decrease followed by another 20% takes 100 to 80 and then to 64, a 36% decrease in total rather than 40%. To combine them, multiply the multipliers (0.8 × 0.8 = 0.64) and take the result away from 1.
Can a percentage decrease be more than 100%?
Only when the value ends up below zero. A fall to exactly zero is a 100% decrease, and a fall from 200 to −50 is 125%, because the drop of 250 is bigger than the starting 200. For anything that cannot go negative, such as a price or a headcount, a percentage decrease stays between 0% and 100%.