![]() Now take the difference in profit, and divide it by the profit made in year one:Ħ,170 ÷ 28,120 = 0.219 (to three decimal places) This time, our values are given in the correct order, so we subtract the second figure from the first: What was the company’s drop in profit, expressed as a percentage decrease? In its second year, gross profit had fallen to £21,950. Multiply this by 100 to determine the percentage decrease:Ġ.1396 x 100 = 13.96 (to two decimal places)Īnswer: The town’s population had decreased by 13.96% Example question 2Ī company’s sales figures indicate that in its first year of trading, it made a gross profit of £28,120. Now divide this by the original population:Ģ,850 ÷ 20,410 = 0.1396 (to four decimal places) And 17,560 is our new figure, so:Ģ,850 is the decrease of the town’s population. The original number here is the one given second: 20,410. What was the percentage decrease of the town’s population over the three-year time frame?įirst, determine the order of the values. Three years prior, the town’s population was 20,410. ![]() In 2020, a town had a total population of 17,560. ![]() The figures are not necessarily mentioned in the right order, so be sure to read the question carefully before applying the formula. Example questionsīelow you’ll find two example questions presented as word problems. It’s always worth checking though before finalising your answer.Ī positive result indicates a percentage decrease, a negative result indicates a percentage increase. In most cases this will be obvious from the start, as with a percentage decrease your original figure will be of greater value than the new figure. If, after performing the steps above, you’re left with a negative figure, you’re actually dealing with a percentage increase, not a decrease. Step 4: Confirm it's a percentage decrease We can now say the percentage decrease between 16 and 12 is 25%. Now take the output of the last equation, and multiply it by 100 to express it as a percentage: In our basic example, this means dividing 4 by 16:Ĥ ÷ 16 = 0.25 Step 3: Convert this into a percentage Next, take the numerical decrease, and divide it by the total value of your original number. Step 2: Divide the decrease by the original number So 16 is our original number, and 12 our new number:Ĥ is the numerical value we need to move onto the next step. Take the original number, and subtract the new number from it.Īs a basic example, say we want to calculate the percentage decrease between 16 and 12. The first step is to work out the difference, or decrease, between the two figures you’re dealing with. It’s a relatively straightforward process that takes just four steps to complete.Įach of these steps is explained below, followed by some practice exercises. Whatever the purpose, the method of calculating percentage decrease is the same. A step-by-step guide to calculating percentage decrease Here, you would take your consumption in month x, compared to month y, and apply a simple formula to determine the percentage decrease. It can also be useful in everyday life.Īs an example, you may want to work out your reduction of energy consumption expressed as a percentage. Percentage decrease has many other applications in areas such as science and data analysis. For example, if an asset is worth £30,000 in year x, and £24,000 in year y, we can work out the percentage decrease to express the depreciation in percentage terms. When we talk about percentage decrease in this context, we usually refer to a financial loss, or depreciation in value. As a mathematical concept, it is often used to quantify changes over time, with its most common applications in the world of finance. Percentage change can be either an increase or a decrease. This means expressing, as a percentage, the difference between an original value and a new value. When comparing two figures against each other, it’s often useful to do so in terms of percentage change.
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