Percentage Decrease Calculation: Formula and Example

_{October 16, 2023 by JoyAnswer.org, Category : Mathematics}

How to calculate percentage decrease formula? Learn how to calculate percentage decrease using a formula and a practical example. This article provides insights into the mathematical process.

Table of Contents

How to calculate percentage decrease formula?

To calculate the percentage decrease, you can use the following formula:

Percentage Decrease = [(Original Value - New Value) / Original Value] × 100%

Here's a step-by-step explanation of the formula and an example:

Original Value: This is the initial value or the value before the decrease occurred.
New Value: This is the value after the decrease has taken place.
Subtract New Value from Original Value: Subtract the New Value from the Original Value. This calculation gives you the amount by which the value has decreased.
Divide by Original Value: Divide the decrease by the Original Value to get the relative decrease as a fraction of the original amount.
Multiply by 100%: To express the decrease as a percentage, multiply the fraction by 100%.

Example:Suppose you have an item that originally costs $200, but its price has decreased to $150. To calculate the percentage decrease:

Percentage Decrease = [($200 - $150) / $200] × 100%Percentage Decrease = ($50 / $200) × 100%Percentage Decrease = 0.25 × 100%Percentage Decrease = 25%

In this example, the item has decreased in price by 25%. So, there has been a 25% decrease from the original value of $200 to the new value of $150.

Calculating Percentage Decrease: Step-by-Step

To calculate percentage decrease, follow these steps:

Find the difference between the original value and the new value.
Divide the difference by the original value.
Multiply the result by 100 to express it as a percentage.

Formula for Percentage Decrease and Its Components

The formula for percentage decrease is as follows:

Percentage decrease = (Original value - New value) / Original value * 100%

The components of the formula are:

Original value: The initial value before the decrease.
New value: The final value after the decrease.
Percentage decrease: The decrease expressed as a percentage.

Solving for Percentage Decrease with Practical Examples

Here are some practical examples of how to solve for percentage decrease:

Example 1:

The price of a product was reduced from $100 to $80. What is the percentage decrease in the price?

Percentage decrease = ($100 - $80) / $100 * 100% = 20%

Therefore, the price of the product decreased by 20%.

Example 2:

A student scored 90% on their first test and 80% on their second test. What is the percentage decrease in their score?

Percentage decrease = (90% - 80%) / 90% * 100% = 11.11%

Therefore, the student's score decreased by 11.11%.

Verifying Accuracy in Percentage Decrease Calculations

There are a few ways to verify the accuracy of your percentage decrease calculations:

Check your work carefully. Make sure that you have used the correct formula and that your calculations are accurate.
Use a calculator or spreadsheet to perform the calculations. This can help to reduce the risk of errors.
Ask someone else to check your work for you.

Using Percentage Decrease in Business and Personal Finance

Percentage decrease is a useful concept in business and personal finance. It can be used to calculate things like:

Discounts on products and services
Inflation rates
Investment losses
Weight loss
Energy savings

Here are some examples of how percentage decrease is used in business and personal finance:

A business may offer a 20% discount on its products to attract new customers.
An investor may lose 10% of their investment due to a market downturn.
A person may lose 5% of their body weight through diet and exercise.
A homeowner may reduce their energy consumption by 15% by making changes to their home and lifestyle.

By understanding how to calculate percentage decrease, you can make better decisions about your finances and your life.