Mastering percentage increase and decrease in everyday decisions
We make percent change intuitive by anchoring it to the base value: how far the new number moves relative to the original. That single idea powers quick price checks, KPI summaries, and budget planning.
From raw difference to relative impact
A $12 increase means different things on a $20 item vs a $2,000 invoice. Percent normalizes the change so we compare apples to apples across sizes and categories.
Reverse questions we answer a lot
- “If we target +8%, what number is that?” → multiply by 1.08.
- “If a metric shows −12% from last month, what was the original?” → divide by 0.88.
Common pitfalls
Opposite percents don’t cancel unless they’re applied to the same base. For chained changes across months, multiply factors in order to get the compounded effect.