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How to Calculate 20 Percent Increase OR

## How to Calculate 20 Percent Increase

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There are many ways to calculate a company’s growth over the course of a year. The most common factors are revenue, traffic and customer count. However, the most important factor is conversion. We can define conversion as the number of leads generated from a website, app or call center.

### Calculate

Here's one more angle to consider: What if you know how much an item costs after the 20 percent markup, and you want to know what the original price was before the markup? Think back to the previous example: You know that after a 20 percent markup, the final price is 120 percent of the original. So you can calculate backward to the original price by dividing by 120 percent expressed in decimal form, which is 1.2. The percentage increase calculator is a useful tool if you need to calculate the increase from one value to another in terms of a percentage of the original amount. Before using this calculator, it may be beneficial for you to understand how to calculate percent increase by using the percent increase formula. The upcoming sections will explain these concepts in further detail.Although we have just covered how to calculate percent increase and percent decrease, sometimes we just are interested in the change in percent, regardless if it is an increase or a decrease. If that is the case, you can use the percent change calculator or the percentage difference calculator. A situation in which this may be useful would be an opinion poll to see if the percentage of people who favor a particular political candidate differs from 50 percent.

Let us say your salary is \$50,000 and you were offered a 20% increase, then to calculate your new salary do: \$50,000 + \$50,000 * 20 / 100 = \$50,000 + \$50,000 * 0.2 = \$50,000 + \$10,000 = \$60,000. Let us say you have been approached with an opportunity for a new job and they offer you \$60,000 instead of your current \$50,000 salary. What is the percentage increase from the difference of \$10,000? We plug the numbers into the first formula above to get \$60,000 / \$50,000 * 100 - 100 = 1.2 * 100 - 100 = 120 - 100 = 20% increase. You can verify this using this online percent increase calculator. How do we calculate this percentage increase or decrease? We begin by first calculating the first total and then comparing it to the second total. For example, if we are analyzing the change in sales from one year to the next, our first total will be the sales of the one year, and our second total will be the sales of the next year. We then determine if there is an increase or decrease happening. For example, we have an increase if the second total is greater than the first and we have a decrease if the second total is lower than the first. (Source: study.com)

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