How to calculate a percentage
A percentage is a fraction of 100. The word comes from the Latin per centum, meaning by the hundred, and that is exactly how the maths works: 20% means 20 parts of every 100. Once you hold onto that, every percentage calculation becomes one of a handful of simple patterns, and this page covers the four you will actually meet in real life.
What is X% of a number?
This is the most common percentage question there is: working out a tip, a deposit, VAT, or a commission. Divide the percentage by 100 to turn it into a decimal, then multiply.
What percentage is one number of another?
Use this when you have a part and a whole: marks out of a total, a deposit against a house price, or sales from one product against all sales. Divide the part by the whole, then multiply by 100.
Percentage increase and decrease
This one measures change between two values: a price rise, revenue growth, a drop in costs. Take the difference between the new and original values, divide by the original, and multiply by 100. Dividing by the original number rather than the new one is the step people most often get wrong.
Working out a discount
To find a sale price, subtract the discount from 100%, convert to a decimal, and multiply by the original price. This is quicker than working out the discount amount and subtracting it.
Percentages in business and marketing
We built this calculator because percentages are the working language of commercial decisions, and we use these exact calculations with clients every week. A few of the places they matter most:
- Margin. If a product sells for £40 and costs £25 to make and ship, the margin is (40 − 25) ÷ 40 = 37.5%. Margin is a percentage of the selling price; markup is a percentage of the cost. Mixing them up flatters your numbers.
- Growth. Comparing this month to last month, or this year to last year, is a percentage change calculation, and the divide by the original rule is what keeps year-on-year comparisons honest.
- Conversion rate. Orders divided by visitors, times 100. If 25,000 people visit and 500 buy, that is a 2% conversion rate, and lifting it to 2.4% is itself a 20% improvement, which is the kind of compounding arithmetic that makes conversion work so valuable.
- Discounting. A 20% discount usually costs far more than 20% of profit. On the £40 product above with £15 of profit, a £8 discount gives away more than half the profit on every sale. Running the percentage before running the promotion is the difference between a sale and a giveaway.
- VAT. Adding 20% VAT is price × 1.2. Removing it is price ÷ 1.2, not price × 0.8, another asymmetry that catches people out.
If those last few feel close to home, that is the day job: we are a D2C marketing practice and this kind of arithmetic sits underneath every recommendation we make, from paid media to email.
Frequently asked questions
How do I work out a percentage of a number without a calculator?
Why is a percentage increase not the same as the decrease back?
What is the difference between percentage points and percent?
How do I add or remove VAT?
Is this calculator free? Do you store what I type?
Good with numbers. Better with growth.
We are a D2C marketing practice that measures everything the way this page does: honestly, and against an objective agreed up front.