The Ultimate Guide to Percentages for Digital SAT Math, GCSE, IGCSE, ACT, and High School Mathematics (Part 2)
Understanding Percentage Increase and Percentage Decrease from First Principles
In the previous chapter, you learned that a percentage represents a quantity out of every one hundred equal parts. You also learned how to convert between fractions, decimals and percentages and how to calculate a percentage of a number.
In this chapter, we will build on those ideas to understand percentage increase and percentage decrease. Instead of memorising formulas, you will learn why these calculations work. Once you understand the reasoning behind the mathematics, percentage problems become much easier, whether they appear in Digital SAT Math, PSAT, ACT Math, GCSE Mathematics, IGCSE Mathematics, Cambridge Mathematics, Edexcel Mathematics, AQA Mathematics, or any other secondary school mathematics course.
Although examination questions are written in different styles, the mathematical ideas remain exactly the same.
Why Do We Use Percentages to Compare Change?
Imagine two libraries.
Library A receives 40 new books.
Library B also receives 40 new books.
At first glance, both libraries appear to have grown by exactly the same amount.
However, suppose Library A originally had 200 books, while Library B originally had 2,000 books.
The increase is identical.
The effect is not.
Adding forty books to a collection of two hundred is a much greater change than adding forty books to a collection of two thousand.
This is why mathematicians do not compare only the increase.
Instead, they compare the increase with the original quantity.
Once this comparison has been made, the result is converted into a percentage.
Using percentages allows us to compare changes fairly, even when the original quantities are completely different.
Building the Formula Yourself
Suppose a quantity increases.
There are three important numbers.
• The original value.
• The new value.
• The increase.
The increase is found first.
Increase = New Value − Original Value
Now compare the increase with the original quantity.
Increase ÷ Original Value
This comparison gives a decimal.
Since percentages mean "out of every one hundred," multiply the decimal by 100.
The complete calculation becomes
Percentage Increase = (Increase ÷ Original Value) × 100%
Notice that this formula has been developed logically instead of being memorised.
Example 1
A reading club had 160 members at the beginning of the year.
By the end of the year, it had 200 members.
Find the percentage increase.
Step 1
Find the increase.
Increase
= 200 − 160
= 40
The club gained forty new members.
Step 2
Compare the increase with the original number.
40 ÷ 160
= 0.25
This means the increase is one quarter of the original membership.
Step 3
Convert the decimal into a percentage.
0.25 × 100
= 25%
Answer
The membership increased by 25%.
Why Do We Divide by the Original Value?
Suppose another reading club also gained forty members.
This club increased from 800 members to 840 members.
Again,
Increase
= 40
Now compare it with the original size.
40 ÷ 800
= 0.05
0.05 × 100
= 5%
Although both clubs gained forty members, the percentage increase is very different.
First club
25%
Second club
5%
The original value determines how significant the increase really is.
Example 2
A wildlife park recorded 480 visitors on Saturday.
On Sunday, 600 visitors entered the park.
Find the percentage increase.
Step 1
Find the increase.
600 − 480
= 120
Step 2
Divide by the original number.
120 ÷ 480
= 0.25
Step 3
Convert to a percentage.
0.25 × 100
= 25%
Answer
The number of visitors increased by 25%.
Understanding Percentage Decrease
A percentage decrease follows exactly the same reasoning.
The only difference is that the quantity becomes smaller instead of larger.
Again, we compare the amount of change with the original quantity.
Building the Formula
First calculate the decrease.
Decrease
= Original Value − New Value
Next compare this decrease with the original value.
Decrease ÷ Original Value
Finally convert the decimal into a percentage.
This gives
Percentage Decrease = (Decrease ÷ Original Value) × 100%
Notice that the denominator has not changed.
The original quantity is always used because that is where the change began.
Example 3
A nature reserve contained 950 trees.
After a severe storm,
874 trees remained.
Find the percentage decrease.
Step 1
Calculate the decrease.
950 − 874
= 76
Step 2
Compare with the original number.
76 ÷ 950
= 0.08
Step 3
Convert to a percentage.
0.08 × 100
= 8%
Answer
The number of trees decreased by 8%.
Example 4
A water tank originally contained 1,500 litres of water.
After irrigation,
1,200 litres remained.
Find the percentage decrease.
Step 1
Decrease
= 1,500 − 1,200
= 300
Step 2
Compare with the original quantity.
300 ÷ 1,500
= 0.2
Step 3
Convert to a percentage.
0.2 × 100
= 20%
Answer
The amount of water decreased by 20%.
Finding the New Value After a Percentage Increase
Sometimes the percentage increase is given instead of the new value.
Instead of finding the percentage change, your task is to calculate the new quantity.
There are two reliable methods.
The first method develops the answer step by step.
The second method uses a multiplier.
Both methods produce exactly the same result.
Example 5
Increase 640 by 15%.
Method 1
Find 15% of 640.
15 × 640
= 9,600
Now divide by 100.
9,600 ÷ 100
= 96
The increase is 96.
Now add this increase to the original value.
640 + 96
= 736
Therefore,
the new value is 736.
Method 2
A 15% increase means the final quantity becomes
100% + 15%
= 115%
Convert 115% into a decimal.
115%
= 1.15
Now multiply.
640 × 1.15
= 736
Both methods produce exactly the same answer.
Why Does the Multiplier Work?
Many students memorise multipliers without understanding them.
Suppose a quantity increases by 12%.
The original quantity already represents
100%.
Adding another 12% gives
112%.
Since
112%
= 112 ÷ 100
= 1.12
Multiplying by
1.12
automatically includes both the original quantity and the increase.
Understanding this idea makes multipliers much easier to remember.
SAT Strategy
Many examination questions never use the words percentage increase or percentage decrease. Instead, they describe situations involving attendance, rainfall, production, business sales, scientific experiments, test scores, or population changes. Before performing any calculation, identify the original quantity, the new quantity, and whether the change represents an increase or a decrease. This simple habit helps prevent many common errors and is especially useful in Digital SAT Math, ACT Math, GCSE Mathematics, and IGCSE Mathematics.
Practice Questions
A museum welcomed 720 visitors on Monday and 900 visitors on Tuesday. Find the percentage increase.
A reservoir contained 4,500 cubic metres of water. After a dry season, it contained 3,960 cubic metres. Find the percentage decrease.
Increase 840 by 18%.
Increase 360 by 12.5%.
A factory produced 2,400 bicycles last year and 2,760 this year. Find the percentage increase.
A theatre sold 640 tickets on Friday and 560 on Saturday. Find the percentage decrease.
Answers
25%
12%
991.2
405
15%
12.5%
Chapter Summary
Percentage increase and percentage decrease measure how much a quantity changes relative to its original value. By comparing the amount of change with the starting quantity, percentages provide a fair way of comparing situations involving different sizes. This principle is widely used in mathematics, science, economics, business, finance, statistics, and data analysis, making it an essential skill for success in the Digital SAT, PSAT, ACT, GCSE, IGCSE, and other secondary mathematics examinations.
In the next chapter, you will explore successive percentage changes, discounts, profit and loss, sales tax, compound percentage change, and advanced percentage word problems that combine several mathematical concepts into a single question.
Finding the New Value After a Percentage Decrease Using a Multiplier
The multiplier method works just as well when a quantity decreases.
Instead of adding the percentage to 100%, subtract the percentage from 100%.
The remaining percentage represents the portion of the original quantity that is left.
Building the Multiplier
Suppose a quantity decreases by 18%.
The original quantity represents
100%
Subtract the decrease.
100% − 18%
= 82%
Now convert 82% into a decimal.
82%
= 82 ÷ 100
= 0.82
Therefore, 0.82 is the multiplier.
Instead of calculating the decrease separately and subtracting it afterwards, you can simply multiply the original quantity by 0.82.
Example 6
A tablet originally costs ₹24,000.
The store offers a 15% discount.
Find the sale price using the multiplier method.
Step 1
Calculate the multiplier.
100% − 15%
= 85%
Convert 85% into a decimal.
85%
= 85 ÷ 100
= 0.85
Step 2
Multiply the original price by the multiplier.
24,000 × 0.85
= 20,400
Therefore,
the sale price is ₹20,400.
Example 7
A library contained 3,200 books.
After removing damaged books, the collection decreased by 12.5%.
How many books remained?
Step 1
Find the multiplier.
100% − 12.5%
= 87.5%
Convert to a decimal.
87.5%
= 0.875
Step 2
Multiply.
3,200 × 0.875
= 2,800
Therefore,
2,800 books remained in the library.
Example 8
A warehouse stored 960 boxes.
After shipping 35% of them, how many boxes remained?
Step 1
Find the multiplier.
100% − 35%
= 65%
Convert to a decimal.
65%
= 0.65
Step 2
Multiply.
960 × 0.65
= 624
Therefore,
624 boxes remained in the warehouse.