How to calculate percentages: 6 everyday examples

The three percentage formulas you actually need, worked examples for discounts, tips, marks, salary rises and price changes, and the mistakes to avoid.

Everyday maths2 min readUpdated

Key takeaways

  • X% of Y = Y × X ÷ 100.
  • A as a percentage of B = A ÷ B × 100.
  • Percentage change = (new − old) ÷ old × 100.
  • Percentages of different bases do not simply add or cancel: up 50% then down 50% leaves you 25% lower.
On this page
  1. The three formulas
  2. Six everyday examples
  3. Mistakes to avoid

The three formulas

QuestionFormulaExample
What is X% of Y?Y × X ÷ 10015% of 240 = 36
A is what percent of B?A ÷ B × 10045 of 60 = 75%
Percentage change from old to new(new − old) ÷ old × 10080 → 100 = +25%

The percentage calculator answers all three as you type.

Six everyday examples

1. A discount

A jacket costs 320 with 25% off. The discount is 320 × 25 ÷ 100 = 80, so you pay 240. Shortcut: multiply by 0.75. For stacked offers, use the discount calculator.

2. A restaurant tip

For 10% move the decimal point one place left (bill 86 → 8.60). For 15%, add half of that again (8.60 + 4.30 = 12.90). For 20%, double the 10%.

3. Exam marks

42 out of 56 is 42 ÷ 56 × 100 = 75%.

4. A salary rise

From 9,000 to 9,450 a month: (9,450 − 9,000) ÷ 9,000 × 100 = a 5% rise.

5. VAT

Adding 5% VAT to 1,200 gives 1,200 × 1.05 = 1,260. Removing it from a VAT-inclusive price means dividing by 1.05, not subtracting 5%. The VAT calculator does both.

6. Finding the original price

A phone costs 2,040 after a 15% discount. The original price is 2,040 ÷ 0.85 = 2,400. Dividing the new value by (1 − the percentage) reverses a decrease; dividing by (1 + the percentage) reverses an increase.

Mistakes to avoid

  • Up and down are not symmetrical. A price rising 50% then falling 50% ends at 75% of where it started (100 → 150 → 75).
  • Percent vs percentage points. An interest rate going from 4% to 5% rises by one percentage point, which is a 25% increase in the rate.
  • Adding percentages of different totals. 20% off followed by 10% off is 28% off in total, not 30%.
Written by the Toolkeel team at Sole Digital Media

Fact-checked against the sources above. We test every tool we mention. Editorial policy.