Excel is one of the most widely used tools for calculations, analysis, and reporting. Whether you’re a student, accountant, marketer, business owner, or data analyst, knowing how to calculate percentages in Excel is a basic but essential skill.
The good part is that Excel makes percentage calculations simple once you understand the logic.
The confusing part — many people still struggle with formulas, especially when it comes to growth, increase, or percentage difference.
This guide will walk you through everything step by step, using simple language and real examples.
What is a percentage?
A percentage represents a number as a fraction of 100.
Example:
- 50% = 50 out of 100
- 25% = 25 ÷ 100
In Excel, percentages work the same way, just formatted differently.
How to Calculate Percentage in Excel
The basic formula to calculate a percentage in Excel is:
= (Part / Total) * 100
Example
If you scored 40 marks out of 80:
| A (Marks Obtained) | B (Total Marks) | C (Percentage) |
| 40 | 80 | =A1/B1*100 |
Result: 50%
Better Way
Instead of multiplying by 100, Excel allows you to use percentage format:
=A1/B1
Then:
- Select the cell
- Click Percentage (%) from the toolbar
Excel will automatically convert it.
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How to Calculate Percentage in an Excel Sheet for Multiple Values
When working with large datasets, Excel saves a lot of time.
Example: Sales Contribution
| Product | Sales |
| A | 20,000 |
| B | 30,000 |
| C | 50,000 |
Total Sales (B5):
=SUM(B2:B4)
Percentage for Product A:
=B2/$B$5
Use an absolute reference ($), so the total doesn’t change when dragging the formula.
How to Calculate Percentage Increase in Excel
The percentage increase shows how much a value has grown compared to its original value.
Formula
= (New Value – Old Value) / Old Value
Example
Old Salary: 20,000
New Salary: 25,000
=(25000-20000)/20000
Result: 25% increase
Apply percentage formatting to see the result clearly.
How to Calculate Percentage Change in Excel
Percentage change is similar to percentage increase, but it can be positive or negative.
Formula
=(New Value – Old Value) / Old Value
Example
Sales dropped from 10,000 to 8,000:
=(8000-10000)/10000
Result: -20%
This helps track performance drops or growth trends.
How to Calculate Growth Percentage in Excel
Growth percentage is commonly used in:
- Sales reports
- Revenue analysis
- Website traffic growth
- Business forecasting
Formula
=(Current Period – Previous Period) / Previous Period
Example
January Sales: 50,000
February Sales: 65,000
=(65000-50000)/50000
Result: 30% growth
This method is widely used in business dashboards.
Also Read: How to Unhide Columns in Excel: Step-by-Step Complete Guide
How to Calculate Percentage Difference in Excel
The percentage difference compares two values, without treating one strictly as old or new.
Formula
=ABS(Value1 – Value2) / AVERAGE(Value1, Value2)
Example
Price in Store A: 120
Price in Store B: 100
=ABS(120-100)/AVERAGE(120,100)
Result: 18.18% difference
This is useful for comparison analysis, pricing, and surveys.
Read Also: How to Remove Duplicates in Excel: A Complete Guide
How to Add a Percentage to a Number in Excel
To increase a value by a percentage:
Formula
=Number * (1 + Percentage)
Example
Price: 1,000
GST: 18%
=1000*(1+18%)
Result: 1,180
How to Subtract Percentage in Excel
Formula
=Number * (1 – Percentage)
Example
Price: 2,000
Discount: 10%
=2000*(1-10%)
Result: 1,800
How to Calculate the Percentage of Total in Excel
This is very common in reports.
Formula
=Part / Total
Then format as a percentage.
Example
Department Expense: 15,000
Total Expense: 1,00,000
=15000/100000
Result: 15%
Common Mistakes While Calculating Percentage in Excel
Many errors happen due to small mistakes:
- Forgetting to format the cell as a percentage
- Dividing in the wrong order
- Not using absolute references ($)
- Multiplying by 100 unnecessarily
- Using an incorrect base value
Understanding the logic fixes most issues.
Tips to Work Faster With Percentages in Excel
- Use Ctrl + Shift + % to apply percentage format
- Always double-check the base value
- Use absolute references for totals
- Keep formulas simple and readable
- Label columns clearly
Real-Life Uses of Percentage Calculation in Excel
Percentages are used everywhere:
- Exam result analysis
- Sales growth tracking
- Financial reports
- Marketing performance
- Discount & tax calculations
- Profit & loss analysis
Once you master it, Excel becomes far more powerful.
Read Also: Build a Dynamic Marksheet in Excel with Advanced Formulas
Final Thoughts
Learning how to calculate percentages in Excel is not about memorizing formulas; it’s about understanding the underlying concepts. It’s about understanding what you’re comparing and why.
Once that part is clear, Excel does most of the work for you.
Whether it’s percentage increase, percentage change, growth percentage, or percentage difference, the core logic stays the same — only the use case changes.
With regular practice, these calculations become second nature and save you hours of manual work.
“If you’re serious about building strong Excel skills beyond basic calculations, learning from an experienced Advanced Excel Institute can help bridge the gap between theory and real-world application.”
