Calculation type: Finding the percentage gain needed to recover from a percentage loss (breaking even).
Calculator usage: Use the
Percentage Change Calculator (“What is the percentage change from the Original value to the New value?”). Enter $
800 [old value] and $
1000 [new value]. It will show the gain needed to break even.
Watch out: A
20% loss does NOT need a
20% gain to recover. After a
20% loss, $
1000 becomes $
800. A
20% gain on $
800 is only +$
160 = $
960 — still below $
1000. You actually need +
25%.
Formula explanation:
We want the percentage gain that turns the post-loss value back into the original amount.
Value after the drop = $
1000 × (1 −
20 / 100) = $
800
Formula: Required gain = Loss / (100 − Loss) × 100
Required gain =
20 / (100 −
20) × 100 =
20 /
80 × 100
= 25%
Amount to recover = $
1000 − $
800 = $
200