A 0% increase means the two values are equal. A 25% result means the gain equals one quarter of the original amount, so the final value is 125% of the start. An increase can exceed 100%: moving from 40 to 100 adds 60, which is 150% of 40.
A percentage alone does not explain the cause or quality of growth. Seasonal effects, inflation, changes in measurement, and different populations can affect comparisons. Report the period, unit, and original values when they matter.
Growth comparisons need consistent definitions. Revenue can rise because more units were sold, prices increased, or both; headcount can rise after hiring or after a merger. The calculation gives the size of the rise without assigning a cause. If inflation or population growth matters, adjust the underlying figures before calculating or explain that the result is nominal. For a series of periods, calculate each interval against its own starting value rather than averaging the individual percentage rates. To measure the full change from the first period to the last, use those two endpoint values directly. When targets are involved, distinguish “increase by 20%” from “increase to 20%,” since the latter names a final rate. Record the figures before rounding when they will feed another calculation.