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Percent Increase and Decrease

Drag the percent. Above zero the middle bar grows by that percent and the last bar shrinks by the SAME percent — but from the middle bar's bigger height. Below zero it shrinks first and grows back from the smaller height. Either way it lands short of the dashed line.

100 up 15% then down 15% = 97.8, not 100

The increase is 15% of 100, but the decrease is 15% of a bigger number.

Start
100
After the increase
115
After the decrease
97.8
Net change
−2.3%

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Where it usually goes wrong

"Up 20%, then down 20%" sounds like it should cancel out, because plain addition and subtraction of the same amount does — $20 up and $20 down always gets back to the start. Percent does not work that way, and the reason is usually shown as a worked calculation rather than something a person watches actually happen to a quantity.

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Where this goes next

The net result is always exactly −(percent²)/100 — 10% up-and-down loses 1%, 20% loses 4%, 50% loses 25% — which is why a stock that drops 50% needs a 100% gain, not 50%, to get back to where it started: the recovery percent has to be measured from the smaller, post-drop number.

More about numbers and proportion