Percentage of a Percentage Formula:
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The "percentage of a percentage" calculation determines what portion of a base value results from applying two successive percentage calculations. This is commonly used in scenarios like successive discounts, compound commissions, or layered tax calculations.
The calculator uses the formula:
Where:
Explanation: The formula first converts both percentages to decimal form (by dividing by 100), then multiplies them together with the base value to get the final result.
Examples: Calculating successive discounts (e.g., 20% off, then additional 15% off), determining layered tax rates, or computing compound commission structures.
Tips: Enter both percentages (0-100) and the base value. The calculator will show the result of applying both percentages sequentially to the base value.
Q1: Is this different from adding percentages?
A: Yes! Adding percentages (p1 + p2) gives a different result than calculating percentage of a percentage (p1 × p2).
Q2: Can I chain more than two percentages?
A: Yes, the principle extends to any number of successive percentages by multiplying them all together.
Q3: What if one percentage is 0%?
A: Any 0% in the chain will make the final result 0, as you're taking 0% of something.
Q4: How is this different from compound percentage?
A: Compound percentage typically refers to repeated application to a changing base (like interest), while this calculates a single application of multiple percentages.
Q5: Can percentages exceed 100%?
A: While the calculator allows it mathematically, percentages over 100% represent amounts greater than the original base value.