How it’s calculated
A percent increase compares the change in price with the original price.
Example (OpenStax Prealgebra): a fee rising from $26 to $36 a unit is an increase of $10, and 10 ÷ 26 = 38.5%. Going the other way, a 5% increase on $26 gives 26 × 1.05 = $27.30.
Increases and decreases are not symmetrical: after a 25% rise, it takes a 20% cut to get back to the old price.
Frequently asked questions
Why does a 10% rise followed by a 10% cut not get back to the start?
The cut is taken from the higher price. 100 → 110 → 99. To undo a 10% rise you need a 9.09% cut.
How do I raise prices to keep the same margin after a cost increase?
If costs rise by x% and you want the same percentage margin, raise prices by the same x%. Use the margin calculator to check a specific target.
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Sources
- Prealgebra 2e, 6.2 Solve General Applications of Percent (percent increase) — OpenStax
- Contemporary Mathematics, 6.1 Understanding Percent — OpenStax
Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.
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