How To Calculate Salary Increase By Percentage
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This article was written by Michael R. Lewis. Michael R. Lewis is a retired business executive, entrepreneur and investment advisor in Texas. He has more than 40 years of experience in business and finance, including as Vice President of Blue Cross Blue Shield of Texas. He holds a BBA in Industrial Management from the University of Texas at Austin.
How To Calculate Salary Increase By Percentage
. Municipalities, schools and other groups also use annual population growth rates to estimate building, service, etc. needs. As important and useful as these numbers are, calculating annual percentage growth is not difficult.
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This article was written by Michael R. Lewis. Michael R. Lewis is a retired business executive, entrepreneur and investment advisor in Texas. He has more than 40 years of experience in business and finance, including as Vice President of Blue Cross Blue Shield of Texas. He holds a BBA in Industrial Management from the University of Texas at Austin. This article has been viewed 1,118,103 times.
To calculate the annual percentage growth over a year, subtract the initial value from the final value and then divide by the initial value. Multiply this result by 100 to determine your growth rate as a percentage. Keep reading to learn how to calculate the compound annual growth rate over many years! If you like this page about solving math problems, please let Google know by clicking the +1 button. If you like this page, please also click the +1 button.
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The following free percentage increase calculator step-by-step tutorial will teach you how to calculate using a simple and efficient three-step process. As long as you can remember the three steps and learn to apply them, you will be able to quickly calculate percentages to solve math problems correctly.
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Before you learn how to calculate a percentage increase using our three-step process, let’s review some basic terms and definitions related to percentages.
In mathematics, percent is a fraction of a hundred, and the mathematical symbol for percent is %.
For example, 40% means 40 out of 100. In the diagram below, 40% is covered by the blue box.
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For example, 20% means 20 out of 100. According to this definition, if 20% of 200 students have an exam tomorrow, then a total of 40 students will take the exam tomorrow.
In mathematics, the multiplication factor between two numbers is the difference between the last number and the first number. A percentage increase is always expressed as a ratio of the first number.
Remember that a percentage increase will always be expressed as a percentage and will have a % sign.
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For example, if you had $60 dollars at the beginning of the week and $90 dollars at the end of the week and wanted to see the percentage increase, the ending number would be 90 and the starting number would be 60.
Identifying the starting number and the ending number is relatively easy and important for solving problems involving percentages.
If your total savings of $60 at the beginning of the week increases to $90 by the end of the week, what is the percentage increase?
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So the difference between these two values will be 30 in this example. Note that when calculating a percentage increase, you will always subtract the lower value from the higher value.
The next step is to take the difference (30 in this example) and divide it by the starting number (60 in this example) like this:
Always express your answer as a decimal (doing this will make your life much easier when you get to the third step).
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The final step is to multiply the decimal number from step two by the hundred and express the final result as a percentage.
That’s all! By using three steps, you can end up with a 50 percent increase in your money from the beginning of the week to the end of the week.
Confused? It’s totally fine. Let’s look at another example where we will calculate the percentage increase using the three-step process.
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In 2021, it costs Jakob $48 to fill up his car with gas. In 2022, it costs Jacob $64 to fill up his gas tank. What was the percent increase in the cost of filling Jacob’s gas tank from 2021 to 2022?
For the second step, take the difference (16 in this example) and divide it by the starting number (48 in this example) like this:
Note that the result is a repeating decimal, which is fine. To make things easier, you can round the result to the nearest hundredth decimal place. In this case, you can round the result to 0.33
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The final step is to multiply the decimal number of step two by a hundred and express the final result as a percentage. Then…
We are all done! We have shown that from 2021 to 2020 there has been a 33 percent increase in the cost of filling Jacob’s gas.
Hopefully, you’ll feel better about using the three-step method of calculating percentage increases. But if you could still use a little more practice, let’s look at one last example.
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Last school year, 96 students tried out for the Varsity Baseball Team at Delta High School. This year 212 students tried. What was the percentage increase in students who tried out for the Varsity Baseball Team?
Did you notice that the result of step one is actually greater than the initial value? This case is completely fine and does not prevent the three-step process from working. So, let’s proceed to the second step as follows:
Find the difference (116 in this example) and divide it by the starting number (96 in this example) as follows:
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As in Example 2, you can round the result to the nearest tenth to make things easier. In this case, you can round the result of 1.21
The final step is to multiply the last number of the second step by 100 and express the final result as a percentage. Then…
All done! Notice how in this example the increment is 100%, which just means that the final value was more than double the initial number.
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By now, you should be confident in your ability to calculate a three-step process using percentage increments. However, if you want more practice, I recommend that you work through one-third of the exercises again on your own. Kahneman, D.; Deaton, A. “Higher income improves life evaluation but not emotional well-being” (2010) See 1 more source
If you are wondering how to calculate a salary increase, the salary increase calculator will allow you to easily determine the amount of the salary increase, the percentage of the increase and the new salary amount.
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