How Percentage Calculations Work
Percentages express a fraction or ratio as a fraction of 100. The term comes from the Latin per centum, meaning "by the hundred." Whether you are calculating discounts while shopping, determining sales tax, or analyzing financial growth, understanding percentages is essential.
The Basic Percentage Formula
P × V = Result / 100
Practical Examples
- Finding a Tip: To calculate a 18% tip on a $45 restaurant bill, compute (18 / 100) × 45 = $8.10.
- Sales Discount: If a $80 jacket is on sale for 25% off, the discount is (25 / 100) × 80 = $20. The final price is $60.
- Salary Raise: If your $50,000 salary increases by 5%, your raise is $2,500, resulting in a new salary of $52,500.
