Technology

How to Calculate Percentage Increase and Decrease on Products Quickly and Accurately

With the percentage increase or decrease formula for a product, you will know the real value before and after the product is discounted or increased. This helps you manage your spending better during times of fluctuating market prices. Read the article and save the formula right away.

Administrator

3 May, 2024

Percentage calculations are a fundamental mathematical skill, essential in many everyday activities, from shopping to using tools like Excel. To help you perform this quickly and accurately, here’s a guide from FPT Shop on formulas for calculating percentage increase and decrease in product prices, as well as other related formulas, enabling you to calculate quickly without the need for complex Excel functions.

How to Calculate Percentage Increase/Decrease in Product Prices

Let’s explore the formula for calculating percentage increase and decrease in product prices with specific examples:

How to Calculate Percentage Discount

When you go shopping and find a product on discount, calculating the actual amount you need to pay becomes important. Suppose the original price of an item is 570,000 VND and you receive a 20% discount. Here’s a quick formula to calculate the amount you need to pay after the discount:

Formula for calculating discounted price:

Discounted Price = Original Price x [(100 – % Discount)/100].

Applying to the above example:

20% Discount => 100% – 20% = 80% = 80/100 = 0.8.

The discounted price is: 570,000 VND x 0.8 = 456,000 VND.

This formula is simple and easy to understand, simply subtract the discount percentage from 100 and multiply by the original price of the product.

To calculate the amount of discount, you can also apply the formula:

Discount Amount = Original Price x (% Discount).

Example: 570,000 VND x 20% = 114,000 VND => So the discount is 114,000 VND and the item will cost 456,000 VND.

Therefore, you can quickly calculate the discount amount when applying this formula.

How to Calculate Percentage Increase

When the price of a product increases, you can also easily calculate the amount you need to pay after applying the new increased price using this simple formula:

Formula for calculating increased price:

Increased Price = Original Price x [(100 + % Increase)/100].

This formula is similar to when you calculate the discount, but instead of subtracting the percentage, you will add it.

Example application: Suppose an item with an original price of 570,000 VND and the price of this product has increased by 20%. According to the formula, you would do the following:

100% + 20% = 120% or 1.2.

The amount you need to pay is: 570,000 VND x 1.2 = 684,000 VND.

Thus, it takes only a few minutes to memorize this formula, and you can easily calculate the new price of any product after the price increase has been applied.

How to Calculate Original Price of an Item after Discount

Now that you know the formula for calculating the percentage increase and decrease in product prices, we will learn how to calculate the original price of the product after the product has been discounted.

When you buy a discounted product, you may want to know its original price before the discount was applied. This can help you understand the true discount and assess the value of the deal you’re getting. Here’s how to determine the original value of a product after it’s been discounted:

Formula for calculating original value:

Original Price = Discounted Price/Remaining Percentage after Discount.

If an item is sold for 10 million VND and it’s advertised as a 20% discount from the original price, that means you are paying 80% of the original price.

Applying the formula:

Calculate Remaining Percentage after Discount: 100% – 20% = 80% or 0.8.
Original Price of Product = Discounted Price/ Remaining Percentage.
Original Price = 10,000,000 VND/ 0.8 = 12,500,000 VND.

Thus, the original price of the product before discount was 12,500,000 VND. Understanding this calculation will not only help you know the actual value of the product but also help you assess whether the discount is really worth it.

Other Percentage Formulas in Statistics and Business

To help you gain a deeper understanding of how to calculate percentages in various practical situations beyond product percentage increase and decrease, here are some useful formulas that FPT Shop would like to share. These formulas can be applied to calculate the percentage difference between two periods, bank interest rates, profits, and more.

Formula to Calculate % Growth from Year to Year

Example: In 2022, Company A had a revenue of 100 billion VND. In 2023, the revenue reached 140 billion VND.

Calculation Formula:

% Growth = (Revenue in Later Year – Revenue in Previous Year)/Revenue in Previous Year * 100.

Applying to the example: % Growth = [(140 – 100)/100] * 100 = 40%.

Formula to Calculate % Price Increase of a Product from Previous Day to Next Day

Example: On May 22, 2019, the price of a pen was 3,000 VND. On May 23, 2019, the price increased to 5,000 VND.

Calculation Formula:

% Price Increase = (Price on Later Day – Price on Previous Day)/Price on Previous Day * 100.

Applying to the example: % Price Increase = [(5,000 – 3,000) / 3,000] * 100 = 66.67%.

How to Calculate Bank Interest Rate (%) and Interest Received

When depositing money in a bank, the interest you receive depends on the term of deposit and the amount you deposit.

Suppose you deposit 500,000,000 VND in Vietinbank with a term of 36 months and an annual interest rate of 7%, you can calculate the interest received using two methods:

Formula: Interest = Deposit Amount x Interest Rate (% per year) x (Number of Days Deposited / 365).
Applying to example

Frequently asked questions

To calculate the discounted price of an item, use the formula: Discounted Price = Original Price x [(100 – % Discount)/100]. For example, if an item originally costs 570,000 VND and you receive a 20% discount, the calculation is: 570,000 x 0.8 = 456,000 VND. The discount amount can also be calculated as: Discount Amount = Original Price x (% Discount), so 570,000 x 20% = 114,000 VND discount.

When the price of an item increases, use the formula: Increased Price = Original Price x [(100 + % Increase)/100]. For instance, if an item originally costs 570,000 VND and the price increases by 20%, the new price is: 570,000 x 1.2 = 684,000 VND.

To find the original price of a discounted item, use the formula: Original Price = Discounted Price / Remaining Percentage after Discount. For example, if an item is sold for 10,000,000 VND with a 20% discount, you’re paying 80% of the original price: 10,000,000 / 0.8 = 12,500,000 VND original price.

Yes, there are formulas to calculate year-to-year growth (% Growth = [Later Year Revenue – Previous Year Revenue]/Previous Year Revenue x 100), price increases from one day to the next (% Price Increase = [Later Day Price – Previous Day Price]/Previous Day Price x 100), and bank interest rates (Interest = Deposit Amount x Interest Rate x [Number of Days Deposited / 365]).