How to Calculate Percentage Increase Between Two Prices (Formula and Examples)

Understanding how to calculate percentage increase between two prices is useful when comparing product prices, tracking inflation, reviewing business expenses, or calculating how much a price has risen over time. Whether you are a shopper checking a price change, a business owner adjusting product prices, or an online seller monitoring costs, knowing the percentage increase helps you understand the actual impact of a price change.

For example, if a product previously cost $80 and now costs $100, the price has increased by $20. But what percentage increase does that represent? The answer is 25%, not 20%, because the increase must be measured against the original price.

The good news is that you do not need advanced math to calculate this percentage. You only need the original price, the new price, and a simple formula.

In this guide, you will learn the percentage increase formula, how to calculate the percentage increase between two prices step by step, practical examples, common mistakes to avoid, and how to calculate price increases using a calculator or spreadsheet.

What Is Percentage Increase Between Two Prices?

Percentage increase between two prices measures how much a price has risen relative to its original value. It expresses the difference as a percentage, making it easier to compare price changes regardless of the product's cost.

For example, imagine a pair of shoes originally cost $50 and now costs $65. The price has increased by $15. When you compare that increase with the original price of $50, the percentage increase is 30%.

Percentage increase is commonly used to compare:

• Product prices before and after a price change
• Wholesale costs and supplier price increases
• Monthly bills and utility charges
• Grocery prices over time
• Service fees and subscription costs
• Retail prices before and after a promotion or adjustment
• Business expenses between two periods

The key point is that the original price is always the reference value when calculating a percentage increase.

Percentage Increase Formula Between Two Prices

The standard formula for calculating percentage increase is:

Percentage Increase = ((New Price − Original Price) ÷ Original Price) × 100

You can use this formula for any two prices as long as the original price is greater than zero.

Here is what each part means:

• Original Price: The price before the increase.
• New Price: The price after the increase.
• Price Increase: The difference between the new price and the original price.
• Percentage Increase: The price difference expressed as a percentage of the original price.

A Simple Example

Suppose a product originally costs $40 and its new price is $50.

Step 1: Find the price difference.

$50 − $40 = $10

Step 2: Divide the difference by the original price.

$10 ÷ $40 = 0.25

Step 3: Multiply the result by 100.

0.25 × 100 = 25%

The percentage increase is 25%.

This means the product's price has risen by one-quarter of its original price.

How to Calculate Percentage Increase Between Two Prices Step by Step

Follow these four steps whenever you need to calculate the percentage increase between an original price and a new price.

Step 1: Identify the Original Price

Start with the price before the change occurred. This is your baseline for the calculation.

For example, if a laptop cost $600 last year, the original price is $600.

Step 2: Identify the New Price

Next, determine the price after the increase.

If the same laptop now costs $750, the new price is $750.

Step 3: Calculate the Price Increase

Subtract the original price from the new price.

Price Increase = New Price − Original Price

$750 − $600 = $150

The laptop's price increased by $150.

Step 4: Calculate the Percentage Increase

Divide the $150 increase by the original price of $600, then multiply by 100.

Percentage Increase = ($150 ÷ $600) × 100

Percentage Increase = 25%

Therefore, the laptop's price increased by 25%.

This method works for electronics, clothing, household products, business supplies, and almost any other item with a positive original price.

Percentage Increase Between Two Prices: Examples

Practical examples can help you understand how the formula works in different situations.

Example 1: Product Price Increase

A product's price rises from $25 to $35.

Calculation:

(35 − 25) ÷ 25 × 100 = 40%

The product's price increased by 40%.

Example 2: Grocery Price Increase

A grocery item previously cost $4 and now costs $5.

Price increase:

$5 − $4 = $1

Percentage increase:

($1 ÷ $4) × 100 = 25%

The grocery item's price increased by 25%.

Even though the dollar increase is only $1, the percentage change is relatively large because the original price was low.

Example 3: Clothing Price Increase

A jacket originally cost $80 but now sells for $96.

Price increase:

$96 − $80 = $16

Percentage increase:

($16 ÷ $80) × 100 = 20%

The jacket's price increased by 20%.

Example 4: Wholesale Cost Increase

A business purchases an item from a supplier for $120. The supplier raises the price to $138.

Price increase:

$138 − $120 = $18

Percentage increase:

($18 ÷ $120) × 100 = 15%

The supplier's price increased by 15%.

This calculation can help business owners review purchasing costs and determine whether they need to adjust retail prices.

Example 5: Subscription Price Increase

A monthly subscription increases from $12 to $15.

Price increase:

$15 − $12 = $3

Percentage increase:

($3 ÷ $12) × 100 = 25%

The subscription price increased by 25%.

If the price remains at $15 for 12 months, the annual cost rises from $144 to $180, which is an additional $36 per year.

Example 6: A Large Price Increase

A piece of equipment originally costs $1,500 and its new price is $1,950.

Price increase:

$1,950 − $1,500 = $450

Percentage increase:

($450 ÷ $1,500) × 100 = 30%

The equipment's price increased by 30%.

These examples demonstrate why it is useful to calculate both the absolute price difference and the percentage increase.

Quick Reference Table for Percentage Increase

Use this table to see how different price changes translate into percentages.

Notice that a $20 increase does not always represent the same percentage. An increase from $80 to $100 is 25%, while an increase from $180 to $200 is approximately 11.11%.

The percentage depends on the original price, not just the amount added.

How to Calculate Percentage Increase Using a Calculator

Using a regular calculator is one of the fastest ways to determine the percentage increase between two prices.

Follow these steps:

1. Enter the new price.
2. Subtract the original price.
3. Divide the result by the original price.
4. Multiply the answer by 100.

For example, suppose the original price is $75 and the new price is $90.

Enter the following calculation:

(90 − 75) ÷ 75 × 100

The result is 20%.

Use an Online Percentage Calculator

If you frequently compare prices, an online percentage calculator can save time and reduce calculation errors.

Simply enter the original price and the new price to determine the percentage increase. You can use this method to compare shopping prices, supplier quotes, monthly expenses, or product costs without manually working through the formula every time.

For repeated calculations, keep both prices clearly labeled so you do not accidentally enter the new price as the original price.

How to Calculate Percentage Increase Between Two Prices in Excel

Microsoft Excel and Google Sheets can calculate percentage increases automatically. This is particularly useful if you need to compare dozens or hundreds of product prices.

Suppose your spreadsheet contains the following information:

Enter this formula in cell C2:

=((B2-A2)/A2)*100

The result will be 25.

If you want the result to appear with a percentage symbol, use this formula instead:

=(B2-A2)/A2

Then format cell C2 as a percentage. Excel or Google Sheets will display 25%.

Calculate Percentage Increases for Multiple Products

If you have several products, place their original prices in column A and their new prices in column B. Enter the formula in column C for the first product, then copy or drag it down for the remaining rows.

For example:

This approach is useful for online stores, inventory management, accounting, supplier comparisons, and pricing analysis.

If some original prices may be zero, use a formula that handles those rows separately, such as:

=IF(A2=0,"N/A",(B2-A2)/A2)

Format the result column as a percentage. The formula displays N/A when the original price is zero because the standard percentage increase calculation would otherwise require division by zero.

How to Calculate the New Price After a Percentage Increase

Sometimes you know the original price and the percentage increase but need to find the new price.

Use this formula:

New Price = Original Price × (1 + Percentage Increase ÷ 100)

For example, a product costs $80 and its price increases by 15%.

Step 1: Convert the percentage to a decimal.

15 ÷ 100 = 0.15

Step 2: Add 1.

1 + 0.15 = 1.15

Step 3: Multiply by the original price.

$80 × 1.15 = $92

The new price is $92.

Quick Examples of New Prices After an Increase

This formula is especially useful when setting retail prices, estimating future expenses, or applying a planned price adjustment.

Remember that a price increase is not the same as a markup percentage on cost or a profit margin. These calculations can use different reference values, so choose the formula that matches your objective.

Percentage Increase vs. Percentage Decrease

Percentage increase and percentage decrease use the same basic principle, but they describe different types of price changes.

A percentage increase occurs when the new price is higher than the original price. A percentage decrease occurs when the new price is lower.

Notice that moving from $50 to $60 produces a 20% increase, but moving from $60 back to $50 produces a 16.67% decrease.

These percentages differ because each calculation uses a different original price.

Common Mistakes When Calculating Percentage Increase

Although the formula is simple, a few common errors can lead to incorrect results.

1. Dividing by the New Price

One of the most frequent mistakes is dividing the price difference by the new price rather than the original price.

For example, if a price increases from $80 to $100, the correct calculation is:

($100 − $80) ÷ $80 × 100 = 25%

Dividing the $20 difference by $100 would give 20%, which is not the correct percentage increase.

Always use the original price as the denominator.

2. Confusing the Price Difference With the Percentage Increase

A price rising from $40 to $50 represents a $10 increase, but the percentage increase is 25%.

The dollar amount tells you how much more you pay. The percentage tells you how large that increase is relative to the starting price.

Both figures are useful, but they answer different questions.

3. Reversing the Original and New Prices

Entering the original and new prices in the wrong order can produce a negative result or an incorrect interpretation.

Before calculating, confirm which price came first and which price came afterward.

4. Forgetting to Multiply by 100

Dividing the price difference by the original price produces a decimal. Multiplying that decimal by 100 converts it into a percentage.

For example, 0.25 equals 25%, not 0.25%.

If your spreadsheet cell is already formatted as a percentage, do not multiply the formula by 100 again. Otherwise, the displayed result may be 2,500% instead of 25%.

5. Using the Formula When the Original Price Is Zero

The standard percentage increase formula cannot be used when the original price is zero because division by zero is undefined.

For example, if an item was previously free and now costs $10, the absolute price increase is $10, but a conventional percentage increase cannot be calculated from a zero baseline.

In such cases, report the monetary change instead of assigning a misleading percentage.

Why Calculating Percentage Increase Matters

Knowing how to calculate percentage increase between two prices can help you make more informed everyday and business decisions.

For shoppers: You can compare price changes across stores, determine whether an item has become significantly more expensive, and evaluate whether a discount is meaningful.

For business owners: You can measure changes in supplier costs, track inventory expenses, and review pricing strategies.

For online sellers: You can compare product acquisition costs with current supplier prices and assess how cost changes may affect profitability.

For budgeting: You can measure increases in rent, utilities, subscriptions, insurance premiums, and other recurring expenses.

For financial analysis: You can compare price movements across different periods and understand the relative size of a change.

However, a percentage increase alone does not explain why a price changed or whether the new price is reasonable. Consider factors such as product quality, quantity, taxes, shipping costs, market conditions, and the period being compared.

For a fair comparison, make sure both prices refer to the same product, size, currency, and pricing conditions.

Frequently Asked Questions

1. How do you calculate percentage increase between two prices?

Subtract the original price from the new price, divide the difference by the original price, and multiply by 100.

Formula:

Percentage Increase = ((New Price − Original Price) ÷ Original Price) × 100

For example, if a price rises from $40 to $50, the percentage increase is 25%.

2. What is the formula for percentage increase?

The formula is:

Percentage Increase = ((New Value − Original Value) ÷ Original Value) × 100

When comparing prices, use the original price as the original value and the updated price as the new value.

3. How do I calculate a 10% increase in price?

Multiply the original price by 1.10 to find the new price.

For example, a 10% increase on a $50 product is:

$50 × 1.10 = $55

The price increases by $5, resulting in a new price of $55.

4. How do you calculate the percentage increase from $50 to $75?

Subtract $50 from $75 to get $25. Divide $25 by the original price of $50 and multiply by 100.

($25 ÷ $50) × 100 = 50%

The percentage increase is 50%.

5. How do I calculate percentage increase in Excel?

If the original price is in cell A2 and the new price is in cell B2, enter:

=(B2-A2)/A2

Format the result cell as a percentage to display the percentage increase. If the original price may be zero, add an appropriate zero-value check to avoid a division error.

6. Can the percentage increase be greater than 100%?

Yes. A percentage increase can exceed 100% when the new price is more than twice the original price.

For example, if a product rises from $20 to $50, the increase is $30.

($30 ÷ $20) × 100 = 150%

The new price is 150% higher than the original price.

7. What happens if the new price is lower than the original price?

If the new price is lower, the result of the standard formula will be negative. This indicates a price decrease rather than an increase.

For example, if a price drops from $100 to $80, the result is −20%, representing a 20% decrease.

8. Is percentage increase calculated using the original price or the new price?

Percentage increase is calculated using the original price as the denominator. This establishes the correct baseline for measuring how much the price has changed.

Using the new price instead will produce a different percentage and will not give the standard percentage increase.

9. What is the difference between a price increase and a percentage increase?

A price increase is the actual monetary difference between two prices. A percentage increase expresses that difference relative to the original price.

For example, a product increasing from $100 to $120 has a price increase of $20 and a percentage increase of 20%.

10. Can I calculate percentage increase if the original price is zero?

No, not using the standard percentage increase formula. Because the formula divides by the original price, a zero starting value makes the calculation undefined.

You can still report the absolute increase. For example, a price changing from $0 to $15 represents a $15 increase, but it does not have a conventional percentage increase.

Conclusion

Calculating percentage increase between two prices is a straightforward way to understand price changes and compare costs accurately. The essential rule is to subtract the original price from the new price, divide the difference by the original price, and multiply by 100.

The formula is:

Percentage Increase = ((New Price − Original Price) ÷ Original Price) × 100

Whether you are comparing shopping prices, tracking business expenses, reviewing supplier costs, or updating product prices, this calculation gives you a clearer picture of how much a price has increased relative to where it started.

For occasional calculations, a regular calculator is enough. For frequent comparisons, an online percentage calculator or a spreadsheet can make the process faster and easier.

Always use the original price as the baseline, check that both prices are comparable, and remember that percentage increase measures the relative change rather than the absolute amount alone.

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