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Calculate Percentage Of Pay Increase

Percentage Increase Formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Pay} - \text{Old Pay}}{\text{Old Pay}} \right) \times 100 \]

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1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount, expressed as a percentage. It's commonly used to calculate pay raises, price changes, and growth rates.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Pay} - \text{Old Pay}}{\text{Old Pay}} \right) \times 100 \]

Where:

Explanation: The formula calculates the difference between new and old values, divides by the original value to get a ratio, then converts to percentage by multiplying by 100.

3. Importance of Percentage Increase Calculation

Details: Calculating percentage increases helps in financial planning, salary negotiations, understanding inflation, and analyzing business growth metrics.

4. Using the Calculator

Tips: Enter both new and old pay amounts in the same currency. The calculator will show the percentage increase between the two values.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative result indicates a percentage decrease rather than an increase.

Q2: How is this different from percentage points?
A: Percentage increase is relative to the original value, while percentage points measure absolute difference between two percentages.

Q3: Can I use this for non-salary calculations?
A: Yes, this formula works for any values where you want to measure relative growth (prices, quantities, etc.).

Q4: What if my old pay was zero?
A: The calculation is undefined when old pay is zero, as you can't divide by zero.

Q5: How do I calculate the new amount from a percentage increase?
A: Multiply the old amount by (1 + percentage increase/100). For example, a 5% increase on $100 would be $100 × 1.05 = $105.

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