Math Fundamentals · Lesson 3 of 5

Percentages Explained:
A Complete Beginner's Guide

18 min read Beginner level Prerequisite: Fractions

What You Will Learn

What "percent" means and where the word comes from
How to convert between fractions, decimals, and percentages
How to find a percentage of any number
How to calculate percent increase and decrease
How to work backwards from a percentage to find the original value
Real-world applications: discounts, tips, taxes, grades

Prerequisites

What Does "Percent" Actually Mean?

The word percent comes from the Latin per centum, which means per hundred. The symbol % is just a shorthand way of writing "÷ 100."

Definition: A percentage is a number or ratio expressed as a fraction of 100. When you write 45%, you are saying "45 out of every 100" or the fraction 45/100.

This makes percentages incredibly useful because they put everything on a common scale. Whether you are comparing test scores, sales figures, or nutrition labels, percentages let you make apples-to-apples comparisons instantly.

Every percentage has two equivalent forms:

Being able to switch between all three forms — fraction, decimal, percentage — is the core skill this lesson builds.

The Conversion Triangle: Fractions ↔ Decimals ↔ Percentages

Think of these three forms as three languages that say the same thing. You need to be fluent in all three and able to translate instantly.

Fraction → Decimal: Divide top by bottom

Divide the numerator by the denominator using long division (or a calculator).

Example3/4 → 3 ÷ 4 = 0.75 7/8 → 7 ÷ 8 = 0.875 1/3 → 1 ÷ 3 = 0.333... (repeating)

Decimal → Percentage: Multiply by 100

Move the decimal point two places to the right, then add the % symbol.

Example0.75 → 0.75 × 100 = 75% 0.875 → 0.875 × 100 = 87.5% 0.04 → 0.04 × 100 = 4%

Percentage → Decimal: Divide by 100

Move the decimal point two places to the LEFT (or divide by 100).

Example75% → 75 ÷ 100 = 0.75 87.5% → 87.5 ÷ 100 = 0.875 4% → 4 ÷ 100 = 0.04

Fraction → Percentage: Divide, then multiply by 100

First convert the fraction to a decimal (Step 1), then convert the decimal to a percentage (Step 2).

Full example: What is 3/8 as a percentage?Step 1: 3 ÷ 8 = 0.375 Step 2: 0.375 × 100 = 37.5% Answer: 3/8 = 37.5%

Finding a Percentage of a Number

This is the most common percentage task in daily life: "What is 20% of $85?" or "What is 35% of 240 students?" The method is always the same.

Percentage of a Number = (Percent ÷ 100) × Whole number

Or equivalently: convert the percent to a decimal first, then multiply.

Example 1 — What is 20% of 85?Step 1: Convert percent to decimal 20% → 20 ÷ 100 = 0.20 Step 2: Multiply by the whole number 0.20 × 85 = 17 Answer: 20% of 85 = 17
Example 2 — What is 15% tip on a $64 meal?Step 1: 15% → 0.15 Step 2: 0.15 × 64 = 9.60 Answer: Leave a $9.60 tip Real-world shortcut: 10% of $64 = $6.40 5% is half of that = $3.20 10% + 5% = $9.60 ✓
Example 3 — A shirt is 30% off its $45 original price. What do you save?Step 1: 30% → 0.30 Step 2: 0.30 × 45 = $13.50 savings Step 3: Sale price = $45.00 − $13.50 = $31.50

Percent Increase and Percent Decrease

Percent change tells you how much something has grown or shrunk, expressed relative to where it started. You see this everywhere: population growth, price changes, exam score improvements.

Percent Change = ((New Value − Old Value) ÷ Old Value) × 100

If the answer is positive, it is a percent increase. If it is negative, it is a percent decrease.

Example 1 — Percent increase: a salary rises from $40,000 to $46,000Step 1: Find the change: $46,000 − $40,000 = $6,000 Step 2: Divide by the OLD value: $6,000 ÷ $40,000 = 0.15 Step 3: Multiply by 100: 0.15 × 100 = 15% Answer: 15% salary increase
Example 2 — Percent decrease: a stock drops from $80 to $68Step 1: Change: $68 − $80 = −$12 (negative = decrease) Step 2: Divide by OLD: −$12 ÷ $80 = −0.15 Step 3: × 100: −15% Answer: 15% decrease in value
Example 3 — Test score improved from 60 to 75. By what percentage?Change: 75 − 60 = 15 Old value: 60 Percent change: (15 ÷ 60) × 100 = 25% Answer: 25% improvement

Working Backwards: Finding the Original Value

Sometimes you know the final value and the percent change, and you need the original. Rearrange the formula:

Original = Final Value ÷ (1 + percent change as decimal)
Example — A price including 8% tax is $162. What was the pre-tax price?Tax rate = 8% = 0.08 Formula: Original = Final ÷ (1 + 0.08) = 162 ÷ 1.08 = $150 Answer: The pre-tax price was $150 Check: $150 × 1.08 = $162 ✓

⚠ 5 Most Common Percentage Mistakes

Not dividing by the OLD value for percent change. Always use the starting value as the denominator, not the new value. Dividing by the new value gives a different (wrong) percentage.
Confusing percent change with percentage points. If a test pass rate goes from 70% to 80%, that is 10 percentage points but a 14.3% relative increase. These mean different things.
Forgetting to convert percent to decimal before multiplying. 30% of 50 is NOT 30 × 50. It is 0.30 × 50 = 15.
Applying a percent increase then the same percent decrease and expecting to get back to the original. 100 + 50% = 150. Then 150 − 50% = 75, not 100. Percent changes are relative, not symmetric.
Misplacing the decimal when converting. 5% is 0.05, not 0.5 (which is 50%). Always verify: 5% should be a small fraction of the whole.

Practice Problems

Try each problem, then reveal the worked solution.

Trusted Learning Resources

Free video lessons and exercises covering every aspect of percentages, from basics to complex applications.
Clear visual explanations with interactive examples and a built-in percentage calculator.
Well-structured bite-sized lessons from the BBC, including worked examples and quizzes for self-testing.
Adaptive practice problems that adjust difficulty based on your performance, with instant feedback.

Continue the Math Fundamentals Series

Percentages connect directly to the lessons before and after this one:

Frequently Asked Questions

Ready for the Next Challenge?

Now that you can work confidently with percentages, tackle algebraic thinking — where letters stand in for unknown numbers.

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