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Calculating successive percentage changes

Theory

How do you calculate with percentage changes in a row?
Percentages vergelijken0510152010eerste20tweede

With successive percentage changes, the base changes after each step.

That is why you cannot simply add the percentages together.

Calculate the growth factor for each change. First multiply by the first growth factor and then use that intermediate value for the second change.

  1. Convert the first percentage change into a growth factor.
  2. Multiply the initial value by the first growth factor.
  3. Convert the second percentage change into a growth factor.
  4. Multiply the value after the first change by the second growth factor.
A value is 100. First there is an increase of 10%. Then there is a decrease of 20%. What is the final value?
  1. Calculate the growth factor for the first change of 10%.
  2. Apply the first change
    100 × 1,1 = 110.
  3. Calculate the growth factor for the second change of 20%.
  4. Apply the second change
    110 × 0,8 = 88.

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