Excel Formula for Percentage Price Increase

Formula Overview

To calculate the percentage increase in price from an original amount to a new amount, you can use the following Excel formula:

=(New Price - Original Price) / Original Price

Formula Explanation

• New Price: This is the price after the increase.
• Original Price: This is the price before the increase.
• The formula computes the difference between the new and original prices, which represents the increase. This difference is then divided by the original price to obtain the percentage increase.

Practical Implementation

Assuming you have the following data in an Excel worksheet:

• Cell A1: Original Price (e.g., 50)
• Cell B1: New Price (e.g., 60)

You can place the following formula in Cell C1 to calculate the percentage increase:

=(B1 - A1) / A1

Formatting as Percentage

To display the result as a percentage:

1. Select Cell C1.
2. Go to the Home tab.
3. Click on the Percentage Style button (%) in the Number group.

Practical Example

Input

• A1: 50 (Original Price)
• B1: 60 (New Price)

Output

After applying the formula in C1:

• C1 will show 0.20, which represents a 20% increase when formatted as a percentage.

Summary

• Use the formula =(New Price - Original Price) / Original Price to calculate the percentage price increase.
• Ensure to format the resulting cell to display values as percentages for better readability.

This approach enables you to efficiently assess changes in prices and demonstrates effective percentage calculation in Excel. For further learning, consider exploring resources available on the Enterprise DNA Platform.