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Last updated on October 4, 2025
In mathematics, percentage reduction is used to calculate the decrease in value expressed as a percentage of the original value. Understanding this concept helps in analyzing changes in various contexts such as finance, science, and daily life scenarios. In this topic, we will learn the formula for calculating percentage reduction.
Percentage reduction is a way to express the amount an original value has decreased, in percentage terms. Let’s learn the formula to calculate the percentage reduction.
The formula to calculate percentage reduction is: Percentage Reduction = [(Original Value - New Value) / Original Value] × 100
In various fields such as finance, retail, and data analysis, the percentage reduction formula is crucial.
It helps in understanding the effectiveness of reductions, discounts, and savings.
By learning this formula, individuals can better analyze financial performance, price changes, and budget adjustments.
Students often find formulas tricky. Here are some tips to remember the percentage reduction formula:
The percentage reduction formula is widely used in real-life situations. Here are some applications: -
Students often make errors when calculating percentage reductions. Here are some common mistakes and tips to avoid them and master the formula.
A product's price decreased from $150 to $120. What is the percentage reduction?
The percentage reduction is 20%.
First, find the difference: $150 - $120 = $30. Then, divide by the original price: $30 / $150 = 0.2.
Finally, multiply by 100 to find the percentage: 0.2 × 100 = 20%.
A company's profit decreased from $500,000 to $400,000. What is the percentage reduction?
The percentage reduction is 20%.
First, calculate the difference: $500,000 - $400,000 = $100,000.
Then, divide by the original profit: $100,000 / $500,000 = 0.2. Finally, multiply by 100: 0.2 × 100 = 20%.
A car's value depreciated from $20,000 to $15,000. Find the percentage reduction.
The percentage reduction is 25%.
Calculate the difference: $20,000 - $15,000 = $5,000.
Divide by the original value: $5,000 / $20,000 = 0.25.
Multiply by 100: 0.25 × 100 = 25%.
The enrollment in a course dropped from 80 students to 64 students. What is the percentage reduction?
The percentage reduction is 20%.
Find the difference: 80 - 64 = 16. Divide by the original enrollment: 16 / 80 = 0.2.
Multiply by 100: 0.2 × 100 = 20%.
A city reduced its water consumption from 10,000 gallons to 8,000 gallons. Calculate the percentage reduction.
The percentage reduction is 20%.
Calculate the difference: 10,000 - 8,000 = 2,000.
Divide by the original consumption: 2,000 / 10,000 = 0.2.
Multiply by 100: 0.2 × 100 = 20%.
Jaskaran Singh Saluja is a math wizard with nearly three years of experience as a math teacher. His expertise is in algebra, so he can make algebra classes interesting by turning tricky equations into simple puzzles.
: He loves to play the quiz with kids through algebra to make kids love it.