Result
New Value = Original × (1 + Percentage / 100) Increase Amount = Original × (Percentage / 100) % Increase = ((New − Original) / Original) × 100

The new value formula multiplies by (1 + rate), applying the increase in one step. Two successive percentage increases compound — 10% then 10% is 21% total, not 20%.

New value (original A1, pct B1)
=A1*(1+B1/100)
% increase (original A1, new B1)
=((B1-A1)/A1)*100

Percentage Increase vs Percentage Change

Percentage increase is a specific type of percentage change — one where the direction is always positive (upward). The formula is identical to percentage change: ((New - Original) / Original) × 100. The only difference is context: percentage increase implies you expect a positive result, while percentage change accommodates both increases and decreases.

Finding the new value after a percentage increase is a different calculation: New = Original × (1 + Percentage/100). This formula is used constantly in finance (applying a return to an investment), retail (marking up a wholesale price), and salary negotiations (calculating a raise).

A common mistake: adding the percentage directly to the number. A 25% increase on 200 is not 200 + 25 = 225. It is 200 × 1.25 = 250. The 25% must be applied as a proportion of the original value, not added as a flat number.

Why Percentage Increases Don't Simply Add

Two successive percentage increases compound rather than add. A 10% increase followed by another 10% increase gives 1.10 × 1.10 = 1.21, or 21% total — not 20%. This is the fundamental principle behind compound growth and compound interest.

Conversely, a 20% increase followed by a 20% decrease does not return to the original. Starting at 100: +20% gives 120, then -20% of 120 gives 96 — 4% below the start. This asymmetry is why investment losses hurt more than equivalent gains help: losing 50% requires a 100% gain just to break even.

Frequently Asked Questions

Percentage points and percentages measure different things. If interest rates rise from 3% to 5%, that is a 2 percentage point increase but a 66.7% percentage increase ((5-3)/3 × 100). In news and politics, the distinction is frequently blurred. "Rates increased 2 percent" is ambiguous — it could mean either. Precise communication requires specifying which is meant.
Multiply the original price by (1 + percentage/100). A $45 product with a 30% price increase: $45 × 1.30 = $58.50. To find the increase amount only: $45 × 0.30 = $13.50. To find the percentage increase given two prices: ((New - Old) / Old) × 100.
CAGR is the smoothed annual percentage increase that produces the same end result as actual annual growth over multiple years. If revenue grew from $1M to $2.5M over 4 years, CAGR = (2.5/1)^(1/4) - 1 = 25.7% per year. See the Revenue Growth Rate calculator for the full CAGR calculation.
Yes. A 100% increase means doubling. A 200% increase means tripling (original plus 200% of itself). A 500% increase means the new value is 6× the original. There is no mathematical upper limit on percentage increase, though values over 100% are often expressed differently in practice (e.g., "revenue tripled" rather than "revenue increased 200%").