Calculate the percentage increase or decrease between two values instantly. Useful for comparing prices, salaries, inflation figures and financial changes.
Percentage Increase = ((New Value - Old Value) ÷ Old Value) × 100Subtract the old value from the new value, divide by the old value, then multiply by 100. Example: from 200 to 250 = (250-200)/200 × 100 = 25% increase.
A percentage decrease works the same way but the result is negative. From 300 to 225 = (225-300)/300 × 100 = -25% (a 25% decrease).
Percentage change is used to track salary raises, inflation (CPI), house price changes, investment returns, VAT calculations and tax threshold changes.
Compound growth applies percentage increases repeatedly. UK inflation compounding at 5% annually means prices double roughly every 14 years (Rule of 72: 72÷5=14.4 years).
| Category | 2024/25 | 2025/26 | Increase % |
|---|---|---|---|
| National Minimum Wage (21+) | £11.44/hr | £12.21/hr | +6.7% |
| Council Tax (England avg) | £2,171 | £2,280 | +5.0% |
| State Pension (basic) | £169.50/wk | £176.45/wk | +4.1% |
| Energy price cap (quarterly) | £1,568 | £1,738 | +10.8% |
| Average UK house price | £285,000 | £293,000 | +2.8% |
| ISA allowance | £20,000 | £20,000 | 0.0% |
To calculate a salary increase: subtract the old salary from the new salary, divide by the old salary, then multiply by 100. For example, rising from £28,000 to £30,000 is a £2,000 increase. £2,000 ÷ £28,000 × 100 = 7.14% increase. To find out your new take-home pay after a salary rise, use our salary calculator which accounts for 2025/26 income tax, National Insurance, and student loan thresholds.
To find the original value before a percentage increase, divide the new value by (1 + percentage/100). For instance, if a product now costs £150 after a 25% price rise, the original price was £150 ÷ 1.25 = £120. This reverse method is particularly useful for removing VAT (divide by 1.20 for 20% VAT) or checking whether a shop's claimed percentage discount is accurate. It is also called "working backwards" or finding the "pre-increase base."
Percentage increase and percentage points are easily confused. If a mortgage rate rises from 4% to 6%, it has increased by 2 percentage points, but by 50% (since 2 is 50% of 4). Politicians often use "percentage points" to downplay changes: a 2 percentage point rise sounds smaller than a 50% rate increase. In everyday comparisons — interest rates, inflation, VAT — always check whether a quoted change is in percentage points (absolute) or a percentage of the original figure (relative).