After 20% increase: divide by 1.20 ยฃ96 รท 1.20 = ยฃ80 original
After a Decrease
After 15% decrease: divide by 0.85 ยฃ68 รท 0.85 = ยฃ80 original
The Golden Rule
Original ร Multiplier = Final So: Original = Final รท Multiplier
Forward vs Reverse โ spot the difference!
FORWARD โก๏ธ
"Find 20% of ยฃ80"
ยฃ80 ร 1.20 = ยฃ96
We know the original. Find the new value.
REVERSE ๐
"ยฃ96 is AFTER a 20% increase"
ยฃ96 รท 1.20 = ยฃ80
We know the final value. Find the original.
The SAME multiplier โ but we divide instead of multiply!
What you'll learn:
The key difference between forward and reverse percentages
Finding the original price before a % increase
Finding the original price before a % decrease / discount
Working out the pre-VAT price from a VAT-inclusive price
Spotting the common error (subtracting % from final โ WRONG!)
Multi-step word problems: salary rises, sale prices, depreciation
๐ Learn: Reverse Percentages
Part 1: What Is a Reverse Percentage?
A reverse percentage problem gives you the value after a percentage change has already happened, and asks you to find the original value before the change.
Forward: "A coat costs ยฃ80. It goes up 20%. What is the new price?" โ ยฃ80 ร 1.20 = ยฃ96
Reverse: "A coat costs ยฃ96 after a 20% increase. What did it cost originally?" โ ยฃ96 รท 1.20 = ยฃ80
๐ก In both cases the multiplier is 1.20. Forwards you multiply; in reverse you divide.
Part 2: Building the Multiplier
The multiplier is based on 100% = 1.00 (the "whole"):
Change
What it means
Multiplier
To reverse: divide by
+ 20%
100% + 20% = 120%
1.20
รท 1.20
+ 5%
100% + 5% = 105%
1.05
รท 1.05
โ 15%
100% โ 15% = 85%
0.85
รท 0.85
โ 30%
100% โ 30% = 70%
0.70
รท 0.70
VAT + 20%
Same as +20%
1.20
รท 1.20
Part 3: The Method โ Step by Step
Step 1: Identify the percentage change and whether it was an increase or decrease.
Step 3: Divide the final value by the multiplier. Original = Final รท Multiplier.
Step 4: Check: multiply your original back by the multiplier โ do you get the final value?
๐ Formula: Original = Final รท Multiplier
Part 4: The Common Error Trap
A jacket costs ยฃ120 after a 20% increase. Find the original price.
โ WRONG METHOD
Student thinks: "take off 20%"
ยฃ120 ร 0.20 = ยฃ24
ยฃ120 โ ยฃ24 = ยฃ96
โ ยฃ96 is WRONG
Check: ยฃ96 ร 1.20 = ยฃ115.20 โ ยฃ120
โ CORRECT METHOD
Multiplier = 1.20 (20% increase)
Original = ยฃ120 รท 1.20
= ยฃ100
โ ยฃ100 is CORRECT
Check: ยฃ100 ร 1.20 = ยฃ120 โ
โ ๏ธ Why is subtracting 20% wrong? Because the 20% was taken of the original (ยฃ100), not of the final price (ยฃ120). 20% of ยฃ100 = ยฃ20. 20% of ยฃ120 = ยฃ24. These are different!
Part 5: VAT and Real-Life Contexts
VAT (Value Added Tax) in the UK is 20%. Shop prices often include VAT. To find the pre-VAT price:
A phone costs ยฃ360 including 20% VAT. Find the pre-VAT price.