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Percentage Decrease Calculator

The percentage decrease calculator determines the change from one amount to another in terms of percent decrease. It is important to understand how to calculate the percent decrease manually using the percent decrease formula. The content below will explain these concepts in further detail.

So you must provide an original quantity and a new quantity. The new quantity must be less than the original, or the change will be an increase. The difference between the quantities is computed, which is divided by the original quantity. The result is multiplied by 100. This can also be accomplished using the percentage difference calculator and the percentage change calculator.

How do I calculate percent decrease?

To calculate percentage decrease between the original value a and new value b, follow these steps:

  1. Find the difference between the original and new value: a - b.
  2. Divide this difference by the absolute value of the original value: (a - b) / |a|.
  3. Multiply the result by 100 to convert it into percentages.
  4. That's it! As you see, it's not hard at all to calculate percent decrease.

Percent decrease formula

The instruction we gave above can be summarized in the following math formula for percentage decrease:

% decrease=100×(initialfinal)initial\footnotesize \rm \%\ decrease = 100 \times \frac{(initial - final)}{|initial|}

What is an example of percentage decrease?

Suppose the original value is 750 and the new value is 590. To compute the percentage decrease, perform the following steps:

  1. Compute their difference 750 - 590 = 160.
  2. Divide 160 by 750 to get 0.213.
  3. Multiply 0.213 by 100 to get 21.3 percent.
  4. You can check your answer using Omni's percentage decrease calculator.

Real-life applications

Percentage decrease is used in many contexts to describe a relative decrease over time. This quantity is often more informative than an absolute decrease because it captures trends.

Here is one real-life example where this distinction matters. Suppose that a company achieved $1,000,000 less profit compared to the year before. This information tells us little unless we know how well the company did in previous years. If last year's profit was $2,000,000, then the company profit decreased by 50% — which is very bad news for the company's long-term prospects.

If, by contrast, the firm made a profit of $100,000,000 the year before, then its profit only decreased by 1%. While still a cause of concern, this is a much less dramatic fall than in the first case. This example shows that the relative decrease of a company tells us more about its condition than the absolute decrease.

Another real-life example of a percentage decrease is population decline rate: the rate at which the population of a given place decreased compared to the previous year. For instance, if the population of a town went down from 1000 to 950 inhabitants, then it declined at the rate of 5% (because 100 × (1000 - 950)/1000 = 5).

While some countries have their populations steadily rising (e.g., the USA or India), other countries (like Japan) have experienced a steady population decline for a number of years. Considering the population decline rate rather than the decrease in population size in absolute terms allows us to compare demographic trends among various countries.

FAQs

What is the percentage decrease from 100 to 10?

The percentage decrease from 100 to 10 is equal to 90%. Indeed, we get: (100 - 10) / 100 = 0.9 and 0.9 × 100% = 90%, as we claimed.

What is the percentage decrease from 5000 to 1000?

The percentage decrease from 5000 to 1000 is equal to 80%. Indeed, we get: (5000 - 1000) / 5000 = 0.8 and 0.8 × 100% = 80%, as we claimed.

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