The Percentage Decrease Formula
Percentage decrease calculates the relative drop or reduction of an amount. Use the following mathematical formula:
Percentage Decrease = ((Original Value - New Value) / Original Value) × 100How to Calculate Step-by-Step
- Find the Difference: Subtract the final value (New Value) from the starting value (Original Value). For example, if a product is marked down from $120 to $90, the discount is 120 - 90 = $30.
- Divide by the Original: Divide that absolute difference by the original value. In our example: 30 / 120 = 0.25.
- Convert to Percentage: Multiply the decimal result by 100. So, 0.25 × 100 = 25%.
Real-World Applications
Percentage decrease helps individuals and businesses measure price drops, physical losses, and value declines:
| Category | Real-World Example | Why it Matters |
|---|---|---|
| Retail Markdown | A winter jacket priced at $80 is marked down to $60. | Calculates a 25% discount rate on the product. |
| Asset Depreciation | A company laptop value drops from $1,000 to $700. | Measures a 30% loss in standard hardware value. |
| Weight Loss | A health client weight drops from 180 lbs to 162 lbs. | Tracks a 10% weight loss progress. |
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How to Calculate in Excel
Use the following formula in Excel or Google Sheets to determine percentage decrease automatically:
=(A2-B2)/A2- A2: Original value
- B2: New value
- Format: Format the cell using the % symbol.