# Percentage Decrease Calculator

Result:

Our **percentage decrease calculator** will help you calculate the percentage decrease
between
two values, the calculator will show you the change from one amount to a lesser amount in terms of
percent decrease.

Have you ever wondered how stores calculate the discounts they offer during sales? Or how companies
determine the decrease in their profits from one year to the next?

The answer lies in understanding
**percentage decrease**. Percentage decrease is a way to measure the amount of decrease in a value
compared to its original value. It's an important concept that helps us understand changes in
quantities, prices, and values in various real-life situations.

## How to Calculate Percent Decrease?

Calculating percent decrease might seem complicated at first, but it's actually quite simple. Follow these step-by-step instructions:

**Step 1**: Identify the original value

The original value is the starting point or the initial value before any changes occurred.

**Step 2**: Identify the new value

The new value is the value after the decrease has taken place.

**Step 3**: Subtract the new value from the original value

This step gives you the difference between the original and new values.

**Step 4**: Divide the difference by the original value

Dividing the difference by the original value helps us determine the fraction or ratio of the decrease.

**Step 5**: Multiply by 100 to get the percentage decrease

Multiplying the ratio by 100 converts it into a percentage, which is easier to understand and interpret.

Let's go through an example to make it clearer.

**Example**: Suppose a shirt originally cost $50, but it's now on sale for $40. What is the percentage
decrease in the price of the shirt?

**Step 1**: The original value is $50.

**Step 2**: The new value is $40.

**Step 3**: The difference between the original and new values is $50 - $40 = $10.

**Step 4**: Divide the difference by the original value: $10 / $40 = 0.25.

**Step 5**: Multiply by 100 to get the percentage decrease: 0.25 × 100 = 25%.

Therefore, the percentage decrease in the price of the shirt is 25%.

## Percent Decrease Formula

The step-by-step process we just went through can be summarized in a formula:

`Percentage Decrease = (Original Value - New Value) / Original Value × 100`

Let's break down each component of the formula:

**Original Value**: The initial value before any decrease occurred.**New Value**: The value after the decrease has taken place.**(Original Value - New Value)**: The difference between the original and new values.**(Original Value - New Value) / Original Value**: This fraction represents the ratio or proportion of the decrease compared to the original value.**× 100**: Multiplying the ratio by 100 converts it into a percentage.

Using the formula, we can calculate the percentage decrease for any given situation where we know the original and new values.

## Example of Percentage Decrease

Let's consider a real-life scenario to better understand percentage decrease.

Suppose a clothing store is having a sale, and they've marked down the price of a pair of jeans from $80 to $64. We want to calculate the percentage decrease in the price of the jeans.

**Step 1**: The original value (the price before the sale) is $64.

**Step 2**: The new value (the price after the discount) is $80.

**Step 3**: The difference between the original and new values is $64 - $80 = -$16.

**Step 4**: Divide the difference by the original value: -$16 / $64 = -0.25.

**Step 5**: Multiply by 100 to get the percentage decrease: -0.25 × 100 = -25%.

Therefore, the percentage decrease in the price of the jeans is 25%.

We can also use the formula to solve this problem:

`Percentage Decrease = (Original Value - New Value) / Original Value × 100`

= ($64 - $80) / $64 × 100

= -$16 / $64 × 100

= -0.25 × 100

= -25%

Interpreting the result, we can say that the store has marked down the price of the jeans by 25% during the sale.

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## Frequently Asked Questions (FAQs)

### What is the difference between percent decrease and percent increase?

Percent decrease measures the amount of decrease in a value compared to its original value, while percent increase measures the amount of increase in a value compared to its original value. The calculations for percent decrease and percent increase are similar, but the order of subtraction and division is reversed.

### Can the percentage decrease be greater than 100%?

No, the percentage decrease cannot be greater than 100%. This is because the maximum decrease possible is the original value itself. If the new value is zero, the percentage decrease would be 100%.

### What if the new value is greater than the original value?

If the new value is greater than the original value, it means there has been an increase instead of a decrease. In such cases, you would need to calculate the percentage increase using a different formula.

### How is percentage decrease used in real life?

Percentage decrease is used in various real-life situations, such as:

- Calculating discounts and sales prices in retail stores
- Determining the decrease in a company's profits or revenue from one year to the next
- Measuring the decrease in population or enrollment in a particular area or institution
- Analyzing the decrease in stock prices or investment values over time

### Are there any special cases to consider?

Yes, there are a few special cases to consider when calculating percentage decrease:

- If the original value is zero, the percentage decrease is undefined because division by zero is not possible.
- If the new value is negative, the calculation might not make sense in certain contexts (e.g., negative prices or quantities).

## Conclusion

Understanding percentage decrease is an essential skill that has many practical applications in our daily lives. Whether you're a student, a business owner, or a consumer, being able to calculate percentage decrease can help you make informed decisions and better understand changes in values and quantities.

Remember, the key steps to calculate percentage decrease are:

- Identify the original value
- Identify the new value
- Subtract the new value from the original value
- Divide the difference by the original value
- Multiply by 100 to get the percentage decrease