Percentage Increase and Decrease

In Percentages of an Amount, you learnt how to find a share of a whole. Here, you will use that share to make an amount larger or smaller.

Start with the two-stage methods. We will then explain multipliers, find percentage changes and finish with reverse-percentage examples for both tiers.

What changes, and what is the final amount?

The original amount is the starting amount. It represents 100%. The new amount is what you have after the change.

Increase means make larger. Decrease means make smaller.

Finding 20% of £50 gives £10. In a 20% increase or decrease, that £10 is the change amount, not the final answer.

InstructionAnswer
Find 20% of £50£10 — the share only.
Increase £50 by 20%£50 + £10 = £60 — add the change.
Decrease £50 by 20%£50 − £10 = £40 — subtract the change.

For either change, work out the percentage of the original £50.

Example Question:

A price of £50 increases by 20%. Find the new price.

First find the extra amount. Then decide what to do with it. Example 1 shows both stages.

Exam Tip

Read what the question asks for: the change amount, the final amount, the percentage change or the original amount.

For a final price, do not stop after finding the percentage share.

Keep the original units. In money questions, keep full values during working and round only the final answer to the nearest penny when needed.

Keep the question types separate

Question asks for…Your route
Change amountFind the stated percentage of the original.
New amountFind the change and add/subtract, or multiply by the final-amount multiplier.
Percentage changeChange ÷ original, then convert to a percentage.
Original amount — both tiersDivide the new amount by the forward multiplier.

Check that your answer makes sense

For a positive amount, an increase should give more than you started with. A decrease below 100% should leave a smaller positive amount.

A 50% decrease should halve the original. A 10% increase should give only slightly more than the original.

Check that the final answer has the right unit. A percentage change is given in %, while a new price is given in pounds.

For reverse percentages, apply the original change to your answer. You should recover the given new amount.

Frequently Asked Questions

What is the difference between “20% of” and “increase by 20%”?

“20% of” finds the share only. “Increase by 20%” means add that share to the starting amount. For £50, the answers are £10 and £60 respectively.

Why does a 20% increase use 1.20?

You keep 100% of the original and add 20%. The final amount is 120% of the original, which is 1.20 as a decimal.

Must I use a multiplier?

No. For a forward change, finding the percentage amount and then adding or subtracting is equally valid. Choose the clearest method for the numbers given.

Why divide by the original when finding percentage change?

The question measures the change relative to where you started. The original is the reference amount, or 100%.

Reverse percentages: how do I recognise a reverse-percentage question?

You are given an amount after a percentage change and asked what it was before. Divide by the multiplier for the forward change.

What happens with a 100% decrease?

Nothing remains: the multiplier is 0. You cannot recover an original amount from that result, because every original amount would become 0.

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