Expert: Michael - 4/8/2010

Question
is their in the term of percentage more than 100% exist i.e 102% and more like this. if yes than why percentage is calculated out of hundred .

Answer
Hello Vikram,

Thanks for your question.

This can be a confusing area, but yes, it is indeed possible to have a value of more than 100%. This is usually when we are talking about increases in the value of something.

So, for example, I might purchase a house at the cost of £100,000. If, after I have owned the house for 5 years it is now worth £102,000, then I can say that it is now worth 102% of its value 5 years ago.

In this example, the 102% refers to the amount based on an increase. When we are talking about percentages of an existing amount, then we normally are limited to a maximum of 100%.

I hope that helps.

Michael