Percentage Calculator

Percentage Calculator is a free online tool to calculate percentages.

Frequently Asked Questions (FAQ)

What is a percentage?

A percentage expresses a number as a fraction of 100, essential for financial analysis and business decisions. Used in mortgage calculations, investment returns, interest rates, profit margins, and tax brackets. For example, 25% represents 25 out of 100, or one quarter—commonly seen in loan terms, credit card APR, and insurance premium calculations.

How do you calculate a percentage?

Divide the part by the whole, then multiply by 100. This formula is crucial for calculating ROI (return on investment), mortgage payments, credit card interest, profit margins, and tax deductions. Example: $25 profit on $100 investment = (25÷100) × 100 = 25% return—critical for financial planning and wealth management.

How to calculate percentage of a number?

Multiply the number by the percentage, then divide by 100. For calculating discounts, sales tax, insurance premiums, or loan interest. Example: 20% of $500 = (500 × 20) ÷ 100 = $100. Essential for comparing mortgage offers, investment portfolios, and business profit analysis.

How to calculate percentage increase?

Subtract the original value from the new value, divide by the original, then multiply by 100. Used for analyzing stock performance, real estate appreciation, salary increases, and inflation rates. Example: price increased from $100 to $150 = ((150-100)÷100) × 100 = 50% increase—vital for investment decisions.

How to calculate percentage decrease?

Subtract the new value from the original, divide by the original, then multiply by 100. Critical for calculating discounts, depreciation, tax savings, and insurance rate reductions. Example: price dropped from $200 to $150 = ((200-150)÷200) × 100 = 25% decrease—important for budget planning.

What is a percentage point?

A percentage point is the arithmetic difference between two percentages. Used in finance to describe changes in interest rates, mortgage rates, tax rates, or investment returns. Example: interest rate increasing from 3% to 5% is a 2 percentage point increase—crucial for loan comparisons and refinancing decisions.

How to calculate percentage difference?

Find the absolute difference between two numbers, divide by the average, then multiply by 100. Used for comparing insurance quotes, loan offers, investment portfolios, or business performance. Essential for financial advisors and accountants making comparative analysis.

How to convert fractions to percentages?

Divide the numerator by the denominator, then multiply by 100. Important for financial statements, profit margin calculations, investment allocations, and tax preparation. Example: 3/4 = 0.75 × 100 = 75%—commonly used in accounting and business analytics.

How to convert decimals to percentages?

Multiply the decimal by 100 and add the % symbol. Used in financial reports, interest rate calculations, commission rates, and ROI analysis. Example: 0.15 = 15%—essential for mortgage calculations and credit card interest.

What is the percentage formula?

Percentage = (Part ÷ Whole) × 100. This fundamental formula powers financial calculations including profit margins, tax rates, interest calculations, investment returns, and loan comparisons. Used daily by accountants, financial advisors, and business owners for accurate financial analysis.

How to calculate sales tax percentage?

Divide the tax amount by the pre-tax price, then multiply by 100. Essential for business accounting, tax preparation, and financial planning. Example: $5 tax on $100 purchase = (5÷100) × 100 = 5% sales tax rate.

How to calculate discount percentage?

Subtract the sale price from the original price, divide by the original, then multiply by 100. Important for retail business, pricing strategies, and consumer savings calculations. Example: $80 item marked down to $60 = ((80-60)÷80) × 100 = 25% discount.

How to calculate profit margin percentage?

Divide profit by revenue, then multiply by 100. Critical for business valuation, financial planning, investment analysis, and small business management. Example: $30 profit on $100 revenue = (30÷100) × 100 = 30% profit margin—key metric for investors and lenders.

How to calculate compound interest percentage?

Use the formula: A = P(1 + r/n)^(nt), where r is the interest rate percentage. Essential for retirement planning, investment growth projections, savings accounts, and loan amortization. Understanding compound interest maximizes wealth building and minimizes debt costs.

Why are percentages important in finance?

Percentages standardize comparisons across different scales in mortgage rates, credit card APR, investment returns, insurance premiums, tax brackets, and profit margins. They enable accurate financial decision-making, help compare loan offers, evaluate stock performance, and optimize tax deductions—saving thousands in interest and fees.

Can I use this calculator for business purposes?

Yes, our professional calculator is perfect for business accounting, financial analysis, profit margin calculations, commission rates, markup pricing, tax preparation, and investment portfolio management. Trusted by accountants, financial advisors, and small business owners for accurate financial calculations.