Learn the Percentage Formula of Excel for Easy Calculations

Posted by Roshni Walia
6
Jan 19, 2025
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Excel is an incredibly powerful tool for managing data, and one of its most useful features is the ability to calculate percentages. Whether you're working on financial reports, analyzing survey data, or just trying to calculate discounts, the formula can save you time and effort. In this article, we understand step-by-step how to use the percentage formula of Excel, making it easy to apply to your daily tasks. This formula allows you to find what percentage one number is of another. In Excel, this can be done easily using basic formulas.

Basic Formula

To calculate percentages in Excel, you need to divide the part by the whole and then multiply by 100. Here’s the basic formula:

= (Part / Whole) * 100

Where:

  • Part is the number you want to find the percentage of.

  • The whole is the total number.

Example: Calculating Percentage in Excel

Let’s say you have a sale where the total amount is $500, and the sale amount is $125. You can use the formula to calculate what percentage $125 is of $500.

Here’s how you would write the formula in Excel:

= (125 / 500) * 100

When you press enter, Excel will display the result as 25%. This means that $125 is 25% of $500.

Using Excel for Percentages with Cell References

Instead of typing numbers directly into the formula, you can use cell references to make your work easier. Cell references allow you to reuse formulas and automatically update calculations when you change the values in the cells.

For example, if you have a value of $500 in cell A1 and $125 in cell B1, you can use the following formula in Excel:

= (B1 / A1) * 100

This formula will give you the percentage of the number in B1 (125) about the number in A1 (500). Whenever you update the numbers in cells A1 and B1, Excel will automatically recalculate the percentage. Know more about remove duplicates in Excel topics.

Calculating Percentage Change in Excel

Another useful application of the percentage formula is calculating the percentage change between two numbers. This is helpful when tracking progress over time or comparing values.

To calculate the percentage change, use the following formula:

= ((New Value - Old Value) / Old Value) * 100

For example, let’s say the revenue in January was $1,000 and in February it increased to $1,200. The formula to calculate the percentage increase would look like this:

= ((1200 - 1000) / 1000) * 100

This would give you a result of 20%, indicating a 20% increase in revenue.

Converting Numbers to Percentages in Excel

If you have a decimal number and you want to convert it into a percentage, Excel can help with that too. All you need to do is multiply the decimal by 100.

For example, if you have 0.45 in a cell and want to convert it into a percentage, you can use the formula:

= 0.45 * 100

This will give you 45%. However, an easier way is to format the cell to display the number as a percentage. To do this:

  1. Select the cell with the decimal number.

  2. Right-click and choose "Format Cells."

  3. In the Format Cells dialog box, select "Percentage" and choose the desired number of decimal places.

Excel will automatically display the number as a percentage.

Percentage of Total in Excel

In many cases, you might need to calculate what percentage a specific number is of the total. Let’s say you have data on sales, and you want to find out what percentage a specific product contributes to the total sales.

To do this, use the percentage formula in Excel:

= (Part / Total Sales) * 100

For instance, if Product A had sales of $300, and the total sales are $1,000, you would use the formula:

= (300 / 1000) * 100

This will give you 30%, meaning Product A accounts for 30% of the total sales.

Applying the Formula in Financial Calculations

The formula is especially helpful in financial calculations. It’s commonly used for determining tax rates, discounts, and profits. Here's an example of how to use it in a financial context.

Let’s say you want to calculate the amount of tax on a $500 purchase at a tax rate of 10%. The formula to calculate the tax amount would be:

= 500 * 10%

This would give you a result of $50, which is the amount of tax to pay.

Finding Percentage Using Excel's Built-In Functions

In addition to manually calculating percentages with formulas, Excel also provides built-in functions to make the process easier. One of the most commonly used functions is the PERCENTAGE function.

To use this function, simply type:

= PERCENTAGE(number, percentage)

Where:

  • Number is the value to find the percentage of.

  • Percentage is the percentage you want to apply.

For example, if you want to find 25% of 200, the formula would be:

= PERCENTAGE(200, 25%)

Excel will return 50, which is 25% of 200.

Conclusion

Mastering the percentage formula of Excel opens up a range of possibilities for managing and analyzing data effectively. Whether you are calculating simple percentages, tracking changes over time, or handling more complex financial computations, Excel’s built-in functions and formulas make percentage calculations quick and efficient. By understanding how to use these formulas, you’ll be able to streamline your workflow and increase productivity, ensuring you can get the answers you need with ease.

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