How percentages work
A percentage is a way of expressing a part out of one hundred. To find X% of a number, multiply the number by X and divide by 100. To find what percent one number is of another, divide the first by the second and multiply by 100. These two operations cover most everyday percentage questions: discounts, tips, taxes, interest and statistics.
One subtlety people get wrong: going from 10% to 12% is a 2 percentage point increase, but a 20% relative increase. When comparing percentages, always check which one you are actually measuring — the difference matters in finance, health and news reporting.
Common percentage uses
- Discounts: 20% off $80 = $64
- Sales tax: 8% tax on $50 = $4
- Tips: 18% of a $90 bill = $16.20
- Growth: a value rising from 200 to 250 grew 25%