- Determine the total amount of what you want to find a percentage. …
- Divide the number to determine the percentage. …
- Multiply the value by 100.
How to calculate percentages
Heres how you can calculate a percentage of any number:
Numerous computer programs are available that can figure out percentages for you automatically. For instance, most computers and mobile devices have calculators that can translate percentages. When using Excel, the following formula may be used:
Part / Total = Percentage
Assume that cells b4 and c3 need to be calculated as percentages. Write the function as:
=b4 / c3
Common uses of percentages
Practically every situation in daily life can benefit from the use of percentages. They can establish values, quantify amounts, and assess how much an amount has increased or decreased. Examples of some of the most typical applications of percentages are provided below:
Discounts
A discount is a reduction in cost. Shops, eateries, and other vendors frequently provide discounts on goods and services. For example:
A clothing store is clearing out its remaining supply of $100 designer jeans. In an effort to liquidate them, the store offers the jeans at 50% off the original price Shoppers can now purchase the jeans for only $50.
Investments
Many aspects of investments use percentages. The amount of money in stocks, bonds, and other investments is frequently broken down in investment portfolios by a percentage of the total. For example:
A portfolio could have 20% in bonds, 70% in stocks and 10% in a cash market The stocks section may also include investment percentages for each stock. Financial analysts can also demonstrate the amount of return on investment as a proportion of the initial investment. For example, if the original investment was $50,000 and the 10-year return was $10,000, then the percentage would be 20%
Deductions
Deductions are common when considering income and wages. Businesses can choose how much of a purchase they can write off as a tax deduction. For example:
If a small business owner purchases a car and uses it for company-related travel five days a week and personal travel two days a week, they can deduct about 71% of the cost of the vehicle
Commission
A commission is a type of payment given in return for the sale of a good or service. This is a phrase frequently used by salespeople who receive a commission on each sale they close. For example, a car salesman earns 10% on every vehicle they sell To earn an average commission, they can try to sell more cars of different prices, or they can try to sell a few expensive cars to get a higher commission.
Value changes
Over time, the value of some things may either increase or decrease. This change in value is measured in percentages. Typically, over time, real estate appreciates while equipment, vehicles, and other goods depreciate For example:
A company buys 10 new computers for $10,000. The computers’ value falls to $5,000 after three years. The computers depreciated by 50% in three years.
For the purpose of calculating financial statements, this can be helpful to accountants and analysts.
Taxes
Taxes are a common part of everyday life. A sales tax is applied to every item you buy there. For example:
If you buy $50 in groceries and the sales tax is 3%, your total would be $51 50. Taxes are also applied to your pay. Depending on your city and state of residence, a certain portion of your pay may be deducted from each paycheck automatically. For example, if your weekly pay is $800 and state and federal taxes are 6%, your take-home pay would be $752
Example calculations
A business discovered that its biggest project ran for four months straight in 2019. The business wants to calculate the percentage of the year they spent working on it in an effort to improve.
The business must determine what percentage of 12 is 4, given that there are 12 months in a year.
Heres the formula they would use:
12x = 4
Both sides should divide by 12 to leave X alone in order to balance the equation.
12x / 12 = (x) 4 / 12 = .33
X = .33
The decimal is shifted two places to the right to convert to a percent.
.33 = 33%
The company determines that they spent 33% of the year working on the project
Reversed
Alternatively, percentages can be used to find numbers. For example:
To find out whether residents favored their governor, a local newspaper conducted a survey. Five thousand people responded to the survey by the time it was over. It was found that 40% of all citizens polled still approve of their governor The newspaper wants to determine what 40% of 5,000 is to see how many people approve and disapprove
X = (40%) 5,000
X = (.40) 5,000
X = 2,000
Out of 5,000 citizens, 2,000 approve of their governor. Once the percentage is determined, simple math can be used to determine how many people disapproved:
2,000 approvals out of 5,000 total citizens equals the total number of disapprovals.
5,000 – 2,000 = 3,000
Out of 5,000 citizens, 3,000 disapprove of their governor.
