Percentages are widely used across various fields and everyday situations. In this guide, we will discuss the most common uses of percentages and how to calculate them effectively.
What is a Percentage?
A percentage represents a fraction out of 100. It expresses how much one quantity relates to another, making it easier to compare different values.
Academic Percentage
The most common use of percentages is in academics, making it essential for every student to know how to calculate their own percentage. Let’s start by calculating it:
- Identify your marks: Note the number of marks you obtained in the exam and the total number of marks.
- Use the formula:
Percentage = (Marks Obtained / Total Marks) × 100**
Example: If you scored 410 out of 550 marks, your percentage is:
Percentage = (410 / 550) × 100 = 74.54%
This means you achieved 74.54% in the exam.
Profit or Loss Percentage
Profit or loss percentage is commonly used in business and daily life to assess the profitability of transactions. Here’s how to calculate it:
Profit or Loss Percentage = (Profit or Loss / Cost Price) × 100
Where:
Profit = Selling Price – Cost Price
Loss = Cost Price – Selling Price
Example of Profit: If you bought a book for 500 Rs and sold it for 530 Rs:
Profit = 530 – 500 = 30 Rs
Profit Percentage = (30 / 500) × 100 = 6%
This means you made a profit of 6% from the book sale.
Example of Loss: If you bought a pen for 100 Rs and sold it for 85 Rs:
Loss = 100 – 85 = 15 Rs
Loss Percentage = (15 / 100) × 100 = 15%
This means you have a loss of 15% from selling the pen
Discount Percentage
Discount percentages are commonly used in retail to indicate how much the price of an item has been reduced. To calculate the discount percentage, use the formula:
Discount Percentage = (Discount Amount / Original Price) × 100
Example: If an item originally priced at 200 Rs is sold at a discount of 60 Rs:
Discount Percentage = (60 / 200) × 100 = 30%
This indicates a 30% discount on the item.
Increase or Decrease Percentage
Increase or decrease percentages help us understand how much something has grown or decreased in terms of its original value. Use the following formulas:
- Increase Percentage = (Increase Amount / Original Amount) × 100
Where:
Increase Amount = New Amount – Original Amount - Decrease Percentage = (Decrease Amount / Original Amount) × 100
Where:
Decrease Amount = Original Amount – New Amount
Example of Increase: If your salary increased from 50,000 Rs to 55,000 Rs:
- Increase Amount = 55,000 – 50,000 = 5,000 Rs
- Increase Percentage = (5,000 / 50,000) × 100 = 10%
This indicates a 10% increase in salary.
Example of Decrease:If a stock price drops from 200 Rs to 176 Rs:
- Decrease Amount = 200 – 176 = 24 Rs
- Decrease Percentage = (24 / 200) × 100 = 12%
This means there is a 12% decrease in the stock price.