How to Calculate Growth Factor

Growth factor is a simplified way of calculating percentages. Previously, you have calculated percentages in several stages, finding the percentage first and then adding it to or subtracting it from the original number. With growth factor, you will learn to do this in one operation. Growth factor makes percentage calculation and percentage changes a lot easier, and saves you a lot of time.

Formula

$Growth factor = (1 \pm \frac{p}{100})$ , where $p$ is the percentage.

When increasing, use $(1 + \frac{p}{100})$ . When reduction, use $(1 - \frac{p}{100})$ .

Let me explain the formula: Inside the parentheses you have a number one, plus or minus, and the fraction

\frac{p}{100}

. The number one represents what you should calculate the percentage of. Plus or minus tells you that you have two formulas in one: One formula for increases (plus), and one formula for decreases (minus) in value.