Microsoft Excel is a great tool for basic and complicated calculations. In today’s article, I’m going to show you how to calculate the percentage increase or decrease in Excel. While you are struggling to calculate percentages on paper, Excel will come handy for you. No matter which version of Excel you are using, it will work for you. For this article, we are using MS Excel 2019. Now without further any due let’s begin today’s session.
But, before diving into the big picture, let’s get to know about today’s Excel sheet first.
You can see there are two separate tables. Both the tables have six identical columns Product, Fall Price, Summer Price, Price Difference, New Price, New Price(At Once). Each table has a unique column named Mark Up value and Discount value. The concept of the tables are quite similar. There are products(each table has three products) and prices respectively.
Now for different products we need to calculate the price ratio between Summer and Fall price first, then will calculate updated markup price(For the table at the top) or discount price (For the table at the bottom). MarkUp and Discount percentages have been set separately.
You can download the Excel sheet from the link below.
Calculate Percentage Changes (Increase or Decrease) in Excel
Percentage changes involve two numbers. The basic mathematical approach for calculating a percentage difference is to subtract the second number from the first number. Then divide the subtracted value by the original number.
We will do the same here. Let’s start.
- Subtract the old value from the new value.
- Divide the subtraction by the old value.
So your formula will be like (new value – old value)/old value
Here we calculated the percentage between Summer Price and Fall Price. We Subtract Fall Price from Summer Price and divide the result by Fall Price. Our calculations have been done using Cell Reference.
- Now you may find the result in decimal. At the Number section on the Home tab you will find this list box, Select Percentage.
Job done. You will find the desired format you want. For the rest of the rows of the column write the formula or use AutoFill feature.
Now let’s do the same at the table below.
Oh! Giving negative value. No worries, the Summer Price is lower than Fall Price. So remember when your percentage changes give positive value that means, percentage increases. And when it gives negative value that means, percentage decreases.
Do the same for the rest of the products of this table writing formula manually or using AutoFill.
Calculating Values using Percentage in Excel
Now you may need to calculate values on the basis of a given percentage. Sometimes you may need to calculate percentage increase and sometimes may be in need of calculating percentage decrease.
1. Calculating Percentage Increase in Excel
You can calculate the increase of percentage in a two steps method or a single step method. Both the methods have been listed here. Let’s check it out.
Calculate Percentage Increase in Two Steps
As the name suggests, we will calculate the percentage increase in two steps.
Step 1: Multiply the actual value with percentage.
Here you can see we have multiplied Summer Price for the first product (Asus ZenBook) with MarkUp percentage.
Step 2: Add the calculated value to the actual value.
You will get the updated increased value. Here our goal was to calculate the New Price after markup. You can see we had added actual Summer Price to the calculated Mark Up Value, which gave us the new increased price.
Now for the rest of the products you can write down the formula, following the steps or can use Excel AutoFill feature. But remember to put $ ahead the Cell Reference of B1 before using AutoFill.
Calculate Percentage Increase with a Single Step
In the previous method we saw a two step method, that is helpful to understand the basics of percentage increase easily. But it might seem like a time consuming one. No worries! Now you will see another method by which you can do the task with one go. Let’s see it.
Multiply actual value with (1 + percentage).
Here we have multiplied our product’s actual price with 1 + MarkUp, and got the updated price.
You may have a doubt in your mind, why add a percentage value to 1?
When you are told that the price will be increased by 12%, your updated value will be (100% + 12%) of the present price. 1 is the decimal equivalent of 100%. When you are adding 12% to 1, it will add the decimal equivalent of 12%(0.12) to 1.
Now again, for the rest of the products write down the formula or exercise AutoFill and don’t forget to insert $ ahead the Cell Reference of B1.
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2. Calculating Percentage Decrease in Excel
Similar to the percentage increase calculation, there are two methods here. Let’s explore.
Calculate Percentage Decrease in Two Steps
You will find these two steps are easy to use.
Step 1: Multiply the actual value with percentage.
Here you can see we have multiplied using the Cell Reference (C9 and B7) of the Summer Price for the first product of this table( Acer Aspire 3) and Discount percentage respectively.
Step 2: Subtract the calculated value from the actual value.
You will get the updated decreased value. Since our target was to calculate the New Price after Discount, we had subtracted C9( actual Summer Price) and E9(calculated Discount Value), which gave us the updated decreased price.
Now for the rest of the products you can write down the formula, following the steps or can use Excel AutoFill feature.
Calculate Percentage Decrease with a Single Step
You can calculate the required percentage decrease with a single step similar to the percentage increase.
If you try to relate the concept of the methods discussed so far, hope by this time you have known the formula. Yes this time you need to,
Multiply actual value with (1- percentage)
Here we have multiplied our product’s actual price with 1 – Discount, and got the updated price.
The concept is again similar one. When you are going to count a value decreased by 15%, it means your updated value will be (100% – 15%) of current value.
Now, feel free to write the formula for the rest of the rows or just use AutoFill. But, remember to put $ ahead the Cell Reference of B7 before using AutoFill
That’s all for today’s session. I have listed a couple of ways to calculate percentage increase or decrease in Excel. Hope you will find this helpful. Feel free to comment if anything seems hard to understand. Let me know which of the options you prefer most and why. You can also write your own way to do the task.