What is a Percentage?

A percentage is a way of expressing a number as a fraction of 100. It is denoted using the percent sign (%). For example, 45% is equal to 45/100 or 0.45.

How to Calculate Percentages

Percentages are used in various everyday situations, from calculating discounts during shopping to determining interest rates on loans loans. Here are some common percentage calculations:

• Finding a percentage of a number: Multiply the number by the percentage (divided by 100)
• Finding what percent one number is of another: Divide the first number by the second and multiply by 100
• Percentage increase: Divide the increase by the original number and multiply by 100
• Percentage decrease: Divide the decrease by the original number and multiply by 100

Practical Examples of Percentage Calculations

Percentages are everywhere in daily life. Here are some practical examples:

• Sales and Discounts: If an item originally costs $80 and is on sale for 20% off, the discount is $16 (20% of $80), so the sale price is $64.
• Tips at Restaurants: If your bill is $50 and you want to leave a 15% tip, you would calculate 15% of $50, which is $7.50.
• Tax Calculations: If sales tax is 8% and your purchase is $100, the tax amount is $8.
• Grade Calculations: If you scored 42 out of 50 on a test, your percentage is (42/50) × 100 = 84%.

Why Percentages Matter

Percentages provide a standardized way to compare proportions across different contexts. They make it easier to understand relationships between numbers, especially when dealing with different scales. Whether you're analyzing data, managing finances, or simply trying to figure out how much to tip, understanding percentages is an essential mathematical skill.