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The formula for rate of percentage increase is:

(Old Value - New Value) ÷ Old Value x 100

or

(New Value - Old Value) ÷ Old Value x 100

The reason for the two formula's are that they're exactly the same but depending on the numbers you do not want to result in a negative number.

Let's take an example: Sally purchased a television set in 2012 for $1000. In 2016, Sally sold the television for $6000. Calculate her percentage of increase.

Now we use the formula:

(New Value - Old Value) ÷ Old Value x 100

or

(($6000 - $1000) ÷ $1000) x 100

($5000 ÷ $1000) x 100

5 x 100

500

Thus Sally sold her television set for a 500% increase from when she bought it.

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Q: What is the formula for rate of percentage increase?
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