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Twenty percent of what?

Twenty percent of your money and twenty percent of mine are different amounts of money. A percent is always a share of whatever it is standing next to. Put one on, take the same one off, and see where you end up.

100, up then down 20% 96

Against where you started
−4

What happens to it

Drag the end of the top bar to change what you start with, and the end of the one below it to change the step.

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Where it usually goes wrong

A percent is treated as a fixed amount rather than a share of whatever it is standing beside. That is what makes 20% off and then 20% on feel like it should bring you home. It does not: the second 20% is a share of a smaller number, so £100 comes back as £96, and the missing £4 is not a rounding error.

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Where this goes next

Sale prices, interest, tax and every statistic quoted as a percentage change work exactly this way, and the missing four pounds is where a great deal of money lives.

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