Mathematics

Successive Percentage Changes

Calculate the net effect of two successive percentage changes.

Net Change% = A + B + (A × B / 100)

Formula Explanation

Use signed percentages: increases are positive and decreases are negative.

Variables Explained

A = first percentage change; B = second percentage change.

Solved Example

A value increases by 20% and then decreases by 10%. Find the net change.
Net Change = 20 + (-10) + (20 × -10 / 100) = 8% increase.

Exam Tip

Do not simply add percentages; include the product term.