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Decrease Percentage Formula (Table of Contents)
What is Decrease Percentage Formula?
Percentage decrease is a very important mathematical concept to find the difference between the final value and the initial of any underlying. The method to calculate decrease percentage formula is to find the difference between the final value of an underlying and the initial value of the same underlying and then divide that difference with the initial value. This will give us the percentage decrease in the value of an underlying. The percentage decrease is an important concept as in real life most of the items losses its value the moment it is bought or taken out of the shop or showroom.
 The percentage decrease equation helps in determining the percentage by which the value of the underlying has decreased in actual. The formula is also used a lot in the world of finance as well to determine who much the value of the shares has decreased in percentage, or how much the overall portfolio has decreased.
 It also helps to a great deal in making the comparisons, like for example if the portfolio has seen a percentage decrease and the index which the portfolio is trying to track and emulate has also seen a percentage decrease, then the formula helps in comparing which of the two has fallen more thus helping in making decision whether to make any changes to the portfolio.
The formula for calculating the decrease percentage is represented as follows,
Examples of Decrease Percentage Formula (with Excel Template)
Let’s see some simple to advanced examples of percentage decrease equation to understand it better.
Example #1
If we buy a laptop for $750 and after a year we want to change the laptop because the technology has evolved and our need has also changed to the extent that we need the upgraded version with more space and speed and performance. If you want to sell the laptop after a year, the market value of the laptop will become $400 in spite of the fact that it is only 1 year old and is kept in a very good condition. We can find the percentage decrease for the laptop with the help of the percentage decrease formula.
In the real world, most of the commodities or items losses its market value after it is bought. This situation is applicable in case of a laptop.
Following is given data for calculation of decrease percentage of the laptop.
4.9 (927 ratings)
Therefore, the calculation of percentage decrease is as follows,
= ($400 – $750)/$400
Percentage Decrease will be –
 Decrease Percentage = 47%
In this example for the price of the laptop, we can see that the percentage decrease in the value of the laptop is 47%. The reason for the decrease in prices is an advancement in technology and also in general in the real world the value of an underlying decrease in market value once it is used by one user.
Example #2
Suppose we buy a car for $35,000 and after three years we want to sell the old car and buy a new car as our needs and requirements have changed. If want to sell the car after three years, the market value of the car will become $20,000 in spite of the fact that it is only 3 years old and is kept in a very good condition.We can find the percentage decrease for the car with the help of the percentage decrease formula.
In the real world, most of the commodities or items losses its market value after it is bought. This situation is applicable in case of a car.
Following is given data for calculation of decrease percentage of the car.
Therefore, the calculation of percentage decrease is as follows,
= ($20,000 – $35,000)/$20,000
Percentage Decrease will be –
 Decrease Percentage = 43%
In this example for the price of the laptop, we can see that the percentage decrease in the value of the laptop is 43%. The reason for the decrease in prices is an advancement in technology and also in general in the real world the value of an underlying decrease in market value once it is used by one user.
Example #3
Let us look at a more practical example to use the concept of percentage decrease. The prices of Brent crude in NYMEX was $78 per barrel a year back. It is trading at $ 67 currently. We can find the percentage decrease for Brent crude oil with the help of the percentage decrease formula.
Below is given data for calculation of percentage decrease of Brent crude.
Therefore, the calculation of percentage decrease is as follows,
= ($67 – $78)/$67
Percentage Decrease will be –
 Percentage Decrease = 14%
In this example for the price of the laptop, we can see that the percentage decrease in the value of the laptop is 14%.
Percentage Decrease Calculator
You can use the following Decrease Percentage Calculator.
Final Value  
Initial Value  
Decrease Percentage Formula =  
Decrease Percentage Formula = 



Relevance and Uses
The percentage decrease is an important concept as in real life most of the items losses its value the moment it is bought or used by one user. The percentage decrease equation is also used a lot in the world of finance as well to determine who much the value of the shares has decreased in percentage, or how much the overall portfolio has decreased. Percentage decrease equation is also used to find the percentage decline across commodities in order to make comparisons.
Recommended Articles
This has been a guide to Decrease Percentage Formula. Here we discuss how to calculate Percentage Decrease with examples and downloadable excel sheet. You can learn more about financing from the following articles –
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