How to calculate percentage increase in real life examples?

In real life, calculating percentage increase helps you understand price hikes, tax additions, and tips. The method is always: find the extra amount added, divide it by the original sticker price, and convert to a percentage. This reveals the "true cost" added to your bill.

Formula

Rate = (Extra Amount ÷ Base Amount) × 100

Worked Example

A meal costs $50, but the final bill is $60.

1. Extra Amount: $60 − $50 = $10
2. Base Amount: $50
3. Calculation: $10 ÷ $50 = 0.20
4. Percent: 20%

Result: The extra charges (tax + tip) represented a 20% increase on your meal price.