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How to Calculate Percentage
There are four common percentage calculations used in finance and everyday life. (1) Percentage of a number: multiply the percentage by the number and divide by 100. (2) Percentage change: subtract old from new, divide by old, multiply by 100. (3) What percentage is X of Y: divide X by Y and multiply by 100. (4) Reverse percentage: divide the given value by the percentage and multiply by 100.
Percentage in Finance – Common Uses
Percentages are fundamental to personal finance in India. Interest rates on loans and deposits are expressed as percentages per annum. GST is charged as a percentage of the base price. Tax slabs are defined in percentage brackets. Investment returns, inflation, and salary hikes are all measured as percentages. Understanding percentages is the foundation of financial literacy.
Percentage Change Examples
If your salary increased from ₹50,000 to ₹60,000, the percentage increase is (60,000 − 50,000) ÷ 50,000 × 100 = 20%. If a stock fell from ₹1,200 to ₹900, the percentage decrease is (900 − 1,200) ÷ 1,200 × 100 = −25%. Tracking these changes helps in evaluating investment performance and negotiating increments.