Percentage Increase and Decrease
Percentage increase and decrease use one formula: new value = original × (1 ± percentage change). Add to increase, subtract to decrease. A reverse percentage divides to find the original value.

Video Lesson
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Flashcards
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%20Percentage%20Increase%20and%20Decrease%20-%20Formula.webp)
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The Percentage Formula
- New value = original value × (1 ± percentage change)
- Use “+” for an increase, and “−” for a decrease
Calculating Percentage Increase and Decrease
- Increase: 60 increased by
- Decrease: 90 with
Finding the Original Value (Reverse Percentage)
- Use the same formula, but the original value is the unknown
- Solve it by dividing (e.g. original , so
Practice Questions
Test your understanding
A book costs £50. Its price increases by . What is the new price?
Correct! 🎉 +10 pointsCorrect! 🎉 Worth 10 XPNot quite right
Use the percentage increase formula: New Value = Original Value (1 + Percentage Change).
As a decimal, is , so the multiplier is .
New price: , so the book now costs £55.
You can check it: of £50 is £5, and £50 + £ £55.
A table originally cost £200, and it's now on sale for off. What's the sale price?
Correct! 🎉 +10 pointsCorrect! 🎉 Worth 10 XPNot quite right
Use the percentage decrease formula: New Value = Original Value (1 − Percentage Change).
As a decimal, is , so the multiplier is .
Sale price: , so the table costs £140.
You can check it: of £200 is £60, and £200 − £ £140.
A cinema ticket costs £20. There's a student discount. What do you pay?
Correct! 🎉 +20 pointsCorrect! 🎉 Worth 20 XPNot quite right
Use the percentage decrease formula: New Value = Original Value (1 − Percentage Change).
As a decimal, is , so the multiplier is .
Price paid: , so you pay £17.
Or work out the discount first: of £20 is £3, and £20 − £ £17. Take care with : it is 0.85, not 0.95.
A game is advertised as " off" and now costs £60. What was the original price?
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This is a reverse percentage: the £60 is the price after the discount, not the original.
Start with New Value = Original Value (1 − Percentage Change). The multiplier is , so .
To undo the multiplication, divide: , so the original price was £80.
Check: of £80 is £20, and £80 − £ £60.
A laptop originally cost £600. Its price increased by . What is the new price?
Correct! 🎉 +20 pointsCorrect! 🎉 Worth 20 XPNot quite right
Use the percentage increase formula: New Value = Original Value (1 + Percentage Change).
As a decimal, is , so the multiplier is (not 1.2, which would be a increase).
New price: , so the laptop now costs £672.
Check: of £600 is £72, and £600 + £ £672.
A jacket is advertised as " off", and you also get an extra student discount on the reduced price. If the original price was £100, how much do you pay in total?
Correct! 🎉 +30 pointsCorrect! 🎉 Worth 30 XPNot quite right
Apply the two discounts one after the other, not added together.
First the off: , so the price drops to £70.
Then the off that reduced price: .
So you pay £63. Taking off in one go would give £60, which is wrong: the second discount applies to £70, not to the original £100.
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Interactive Activity
Visualise and calculate percentage increase and decrease
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Frequently asked questions
The questions students bump into most on this topic
One formula: new value = original value × (1 ± percentage change). Add the percentage for an increase and subtract it for a decrease. So 100 increased by 20% is 100 × (1 + 0.2) = 100 × 1.2 = 120, and 100 decreased by 10% is 100 × (1 − 0.1) = 100 × 0.9 = 90. The number in brackets is the multiplier.
Multiply by 1 plus the percentage as a decimal. Your maths score was 60 and goes up by 20%: 60 × 1.2 = 72. A 10% increase means × 1.1, so £50 becomes £55; a 5% increase means × 1.05, so £100 becomes £105; a 2.5% pay rise means × 1.025. One multiplication does the whole job.
Subtract the percentage from 1 to get the multiplier, then multiply. A £90 jacket has 30% off: 1 − 0.3 = 0.7, and 90 × 0.7 = £63. A 15% student discount on a £20 cinema ticket is 20 × 0.85 = £17. The multiplier is always less than 1 for a decrease.
Change the percentage to a decimal by dividing by 100, then add it to 1 for an increase or subtract it from 1 for a decrease. 20% is 0.2, so a 20% increase is × 1.2 and a 20% decrease is × 0.8. 30% off is × 0.7; 12% more is × 1.12. Multiply the original value by that number.
Use the same formula and solve backwards: divide the new value by the multiplier. You paid £36 for a concert ticket after a 40% discount. The multiplier is 1 − 0.4 = 0.6, so original price × 0.6 = 36, and the original price is 36 ÷ 0.6 = £60. No new formula is needed; you divide instead of multiply.
Use the formula twice; do not add the percentages. A £100 jacket has 30% off, then an extra 10% student discount on the reduced price: 100 × 0.7 = £70, then 70 × 0.9 = £63. Adding the discounts to 40% would give £60, which is wrong, because the 10% is taken off £70, not £100.
What's next?
Found this one hard? Go one step back first. Feeling confident? Carry on to the next lesson.

