Math · Arithmetic

Percentages Explained Simply

The word percent comes from the Latin per centum, meaning “out of a hundred”. So one percent is simply one hundredth - just like in the grid below, where each small square is one hundredth of the whole square.

Percentage value = Base value × Percentage ÷ 100 e.g. 25% of $80 = 80 × 25 ÷ 100 = $20

25 out of 100 little squares are colored orange - that is 25%.

đź’¬ Mia asks Grandpa Theo

Mia

A jacket costs $80 and has “25% off”. How much do I actually save?

Grandpa Theo

You calculate 80 × 25 ÷ 100 = 20. So you save $20 - the jacket ends up costing you only $60.

Mia

What if it were 50% off?

Grandpa Theo

50% is simply half! Just divide by 2: 80 ÷ 2 = $40 savings. These shortcuts are worth remembering.

Mia

Are there more tricks like that?

Grandpa Theo

Sure: 10% just means dividing by 10, 1% by 100. And 15% is just 10% plus half of 10% (which is 5%) - that way you can work out almost any percentage in your head.

Try it yourself

A phone costs $250, and you get 12% off. How much do you save?
Answer: 250 × 12 ÷ 100 = $30

Percentages are also used for interest: if a bank pays 3% interest per year, you get exactly $30 in interest on $1000.

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