# Excel Tutorial: How To Do Percentage Formulas In Excel

## Introduction

Excel is a powerful tool for analyzing data, and percentage formulas are an essential aspect of working with numerical data. Whether you are calculating sales growth, budget allocations, or employee performance, understanding how to use percentage formulas in Excel is crucial for accurate analysis and decision-making. In this tutorial, we will cover the basics of percentage formulas in Excel, including how to calculate percentages, percentage change, and percentage of total.

## Key Takeaways

• Understanding percentage formulas in Excel is essential for accurate analysis and decision-making.
• Using the '%' symbol in formulas can make quick percentage calculations.
• Applying percentage formulas to specific cells or ranges allows for tailored analysis of data sets.
• Utilizing built-in functions for percentage calculations, such as 'SUM' and 'AVERAGE', can streamline the process.
• Proper formatting and presentation of percentage values in charts and tables is important for clear communication of data insights.

## Understanding the basics of percentages

A. Definition of percentage and its use in Excel

Percentage is a way of expressing a number as a fraction of 100. In Excel, percentages are often used to calculate growth, discounts, markups, and other important financial metrics. They are represented by the percent symbol (%) and are often used in formulas to analyze and present data.

B. Examples of common scenarios where percentage calculations are used

• 1. Calculating growth rates: Percentages are frequently used to calculate the growth rate of sales, population, or any other variable over a specific period of time. This helps in analyzing trends and making informed decisions.
• 2. Applying discounts and markups: In retail and finance, percentages are used to calculate discounts on products or to determine markups on the cost of goods sold. This is essential for pricing strategies and profitability analysis.
• 3. Determining tax rates: Percentages are used to calculate the amount of tax to be paid on income, sales, or property. This is crucial for financial planning and compliance with tax regulations.
• 4. Analyzing survey results: When presenting survey data, percentages are used to represent the distribution of responses across different categories. This makes it easier to interpret and compare the findings.

## Excel Tutorial: How to do percentage formulas in excel

When working with Excel, it is common to need to calculate percentages for various purposes such as sales, growth rates, or discounts. Using the '%' symbol in formulas can make these calculations quick and easy.

### A. How to use the '%' symbol in formulas

When using the '%' symbol in formulas, it is important to remember that it represents the division of a number by 100. This means that when you use the '%' symbol in a formula, you are essentially converting the number into a percentage.

• Step 1: To use the '%' symbol in a formula, simply type it after the number you want to convert into a percentage.
• Step 2: You can also use the '%' symbol in combination with other operators such as addition, subtraction, multiplication, and division to perform more complex percentage calculations.

### B. Demonstrating simple percentage calculations using the '%' symbol

Let's demonstrate how to use the '%' symbol in simple percentage calculations with the following examples:

• Example 1: Calculating 10% of a number using the '%' symbol: =A1*10%
• Example 2: Calculating the percentage change between two numbers: =((B1-A1)/A1)*100%
• Example 3: Calculating a discounted price: =A1*(1-10%)

## Applying percentage formulas to specific cells or ranges

When working with Excel, it is important to know how to apply percentage formulas to specific cells or ranges in order to calculate percentages for your data sets. In this tutorial, we will explore how to reference cells or ranges in percentage formulas and provide examples of applying percentage formulas to specific data sets.

### How to reference cells or ranges in percentage formulas

When applying percentage formulas in Excel, it is essential to properly reference the cells or ranges in order to perform accurate calculations. To reference a single cell, you can simply use the cell reference (e.g. A1) within your percentage formula. For example, to calculate 10% of the value in cell A1, you can use the formula =A1*10%.

When referencing a range of cells, you can use the ":" (colon) operator to specify the range. For example, to calculate the percentage change between the values in cells A1 and A2, you can use the formula =(A2-A1)/A1*100%.

### Examples of applying percentage formulas to specific data sets

• Example 1: Calculating percentage increase
• In a sales data set, you can calculate the percentage increase in sales from one period to another using the formula: =((New Sales - Old Sales)/Old Sales)*100%

• Example 2: Calculating percentage of total
• For a budget data set, you can calculate the percentage of each expense category as a proportion of the total budget using the formula: =Expense/Total Budget*100%

• Example 3: Calculating percentage contribution
• In a financial analysis, you can calculate the percentage contribution of each revenue stream to the total revenue using the formula: =Revenue Stream/Total Revenue*100%

## Using built-in functions for percentage calculations

Excel offers a range of built-in functions that make it easy to perform percentage calculations. In this tutorial, we will explore the use of these functions to calculate percentages in Excel.

### A. Overview of built-in percentage functions in Excel

Excel provides several built-in functions that are specifically designed for performing percentage calculations. These functions can be used to calculate percentages, find the average percentage, and determine the percentage of a value relative to a total. Some of the most commonly used percentage functions in Excel include 'SUM', 'AVERAGE', and 'PERCENTILE'.

### B. Demonstrating the use of functions like 'SUM', 'AVERAGE', and 'PERCENTILE'

Let's take a closer look at how these functions can be used to perform percentage calculations in Excel:

• SUM: The 'SUM' function can be used to add up a range of values and then calculate the percentage of each value in relation to the total. This can be useful for determining the contribution of each value to the total.
• AVERAGE: The 'AVERAGE' function can be used to calculate the average percentage of a set of values. This is particularly useful when working with data that represents percentages over a period of time.
• PERCENTILE: The 'PERCENTILE' function can be used to determine the value at a specific percentile in a dataset. This can be helpful for analyzing the distribution of percentages within a given set of data.

## Formatting and presenting percentage values

When working with percentage values in Excel, it's important to know how to properly format and present them in order to make your data clear and understandable. In this chapter, we will cover the basics of formatting cells to display percentages, as well as provide some tips for presenting percentage values in charts and tables.

### A. How to format cells to display percentages

• Select the cells: First, select the cells that you want to format as percentages.
• Go to the Home tab: Next, navigate to the Home tab on the Excel ribbon.
• Click on the "Percentage" button: In the Number group, click on the "Percentage" button. This will format the selected cells to display percentages.
• Adjust decimal places: You can also adjust the number of decimal places displayed for your percentages by using the "Increase Decimal" or "Decrease Decimal" buttons in the Number group.

### B. Tips for presenting percentage values in charts and tables

• Use a consistent format: When presenting percentage values in charts and tables, make sure to use a consistent format to avoid confusion. For example, you may choose to display percentages with one decimal place for consistency.
• Label your axes appropriately: When creating a chart that includes percentage values, be sure to label your axes clearly to indicate that the values are percentages. This will help your audience understand the data being presented.
• Consider using a data table: If your chart includes complex percentage values, consider including a data table alongside the chart to provide additional context and clarity.

## Conclusion

In this tutorial, we covered the basics of using percentage formulas in Excel. We learned how to calculate percentages using both the percentage formula and the percentage change formula. We also explored formatting options to display the results as percentages in Excel. Understanding these fundamental concepts is crucial for anyone working with data in Excel.

As you continue to practice and explore percentages in Excel, you will gain confidence in using these formulas in various scenarios. Whether it's for financial analysis, data visualization, or simply for personal use, the ability to work with percentages effectively is a valuable skill. Keep experimenting with different scenarios and formulas to further enhance your proficiency in Excel.

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