Preptics

Interactive Percent Change Calculator: Why 20% Up and 20% Down Isn't 0%

A rise and an equal fall never cancel, because the fall is a percentage of a different, larger amount than the rise was. Raise 500 by 20% and it becomes 600; fall by 20% from there and it lands at 480, not 500. Drag both percent changes below and watch exactly where it lands.

  • Drag a starting amount from 100 to 1,000
  • Set two percent changes in a row, each from −50% to +50%
  • Reads the combined multiplier and the exact final amount as you drag
  • Shows the overall percent change and how far it misses simple addition
  • Colours the final bar to show whether you ended above or below where you started

Why a rise and an equal fall don't cancelLink to the section: Why a rise and an equal fall don't cancel

Raise 500 by 20% in the tool above and it becomes 600. Fall by 20% from there and it lands at 480 — not back at 500. The rise and the fall are the same 20%, but the fall is 20% of 600, a bigger number than the 500 the rise started from, so it takes away more than the rise added.

That is the whole trap. A percent change is only a percent of the original amount for the first change — every change after that is a percent of whatever the previous step left behind. Two changes that look like they should cancel almost never do, and when they don't cancel, the shortfall always goes the same direction: down.

Percent changes are multipliers, and multipliers composeLink to the section: Percent changes are multipliers, and multipliers compose

Every percent change is a multiplication: a 20% rise multiplies by 1.20, and a 20% fall multiplies by 0.80. Chain two changes together and the two multipliers multiply, in either order, to give one combined multiplier for the whole journey: 1.20 × 0.80 = 0.96, so the two-step trip from 500 to 480 is the same as multiplying by 0.96 once.

This is the fact that makes stacked percent-change questions solvable without tracking every intermediate amount: find the combined multiplier first, and the overall percent change is just that multiplier minus one, turned into a percentage. Set the two sliders to +20% and −20% in the tool above and read the combined multiplier: ×0.96, an overall change of −4%.

The classic trap: two 50%-off couponsLink to the section: The classic trap: two 50%-off coupons

Set both percent-change sliders to −50 in the tool above. A single 50%-off coupon takes 500 down to 250. Applying a second 50%-off coupon does not finish the job — it takes 250 down to 125, an overall change of −75%, not −100%. The two coupons together are worth 75% off, not free.

The reason is the same one driving every case here: the second coupon is 50% of 250, not 50% of the original 500. Adding the two percentages, −50% and −50%, suggests −100%, but the real overall change is −75% — an error of 25 percentage points, which is exactly (−50 × −50) / 100.

Why adding the percentages is close but wrongLink to the section: Why adding the percentages is close but wrong

The combined effect of two percent changes, p1 and p2, is not p1 + p2. It is p1 + p2 + (p1 × p2) / 100 — the sum, plus a cross term that is the second change applied to the first change's own effect. That cross term is zero only when one of the two changes is 0%, which is the one case where simple addition happens to be exact.

Two rises compound the other way: set both sliders to +20% in the tool above and the combined change is +44%, not +40% — the missing 4 points are (20 × 20) / 100, the second rise applied to the extra amount the first rise already created. Successive increases always beat simple addition; successive decreases, or a rise and a fall, always fall short of it.

Percent change on the Digital SATLink to the section: Percent change on the Digital SAT

The Digital SAT rarely asks for a single percent change. The more common question chains two changes — a price marked up, then discounted; a population that grows, then shrinks — and asks for the overall percent change, or asks you to find one of the two percentages given the overall result. Both are the same skill: convert every step to a multiplier, multiply them, and convert back.

The wrong-but-tempting move is adding the two percentages, which the tool above shows failing by exactly the cross term every time neither change is 0%. A question that describes a rise and then an equal-sounding fall — or two coupons, or two years of decline — is testing whether you multiply the steps or just add them.

How to use the calculatorLink to the section: How to use the calculator

Drag the start slider to set the beginning amount, then set the two percent-change sliders to whatever sequence you want to test. Every readout updates together: the two multipliers, the combined multiplier, the final amount, and the overall percent change, alongside what simply adding the two percentages would have given instead.

The chart's three bars are the amount at each stage, with a dashed line marking where you started, so whether the final bar lands above or below it is visible before you read a single number.

Common questions

If a price goes up 20% and then down 20%, do you end up where you started?
No — you end up lower. A 20% rise followed by a 20% fall gives a combined multiplier of 0.96, an overall change of −4%, because the fall is 20% of the larger, already-risen amount. Set both sliders to 20 and −20 in the calculator above to see it: 500 becomes 600, then 480.
Do two 50%-off coupons make something free?
No — they make it 75% off, not 100% off. The first coupon takes 500 to 250; the second is 50% of 250, not of the original 500, so it only takes off another 125, landing at 125 rather than 0.
Why doesn't adding two percentages give the right overall change?
Because the second change is applied to whatever the first change left behind, not to the original amount. The true overall change is the sum of the two percentages plus a cross term of (first × second) / 100, which is zero only when one of the changes is 0%.
Is this percent change calculator free to use?
Yes, with no account required. It is the same simulation used inside the Preptics Digital SAT lessons on percentages.

Keep going

Every interactive tool: the full set. How a practice result turns into a score range: the scoring method.

SAT® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, this site. All practice questions and reading passages are original works created by Preptics and are not actual SAT® questions.