When we talk about increase, what do we mean? At its simplest, an increase is a rise in levels of something you measure. The increase can be a percentage or a flat increase, but the underlying idea remains the same. In this guide, we will break down what increase means and how to use it in various contexts.

This guide will cover everything you need to know about increase, including:

- What does increase mean?
- How do you calculate an increase?
- What are the different types of increases?
- When do you use percentage increase vs flat increase?
- How can you optimize increases for your business?

## What does increase mean?

At its core, an increase is a quantitative change. It shows a rise in the value of something. For example, if you earn $10 and then increase your earnings to $20, that is a $10 increase. It is essential to note that an increase can be expressed in different ways. It can be a percentage increase, a flat increase, or a combination of both.

### Percentage increase

A percentage increase shows how much a value has increased in relation to its original value. To calculate the percentage increase:

**Percentage increase = (New value – Original value) / Original value x 100**

For example, suppose you had 100 readers on your blog in the first year, and that number increased to 150 in the second year. The percentage increase would be:

**Percentage increase = (150 – 100) / 100 x 100 = 50%**

So, in the above example, the readers on the blog increased by 50% from the first year to the second year.

### Flat increase

A flat increase happens when a certain value increases by a fixed amount. For example, if your salary increases from $1,000 to $1,500, your flat increase is $500. A flat increase is also known as an absolute increase, and it measures the exact value that has increased.

## How do you calculate an increase?

To calculate the increase of something, you need to know two values. The original value and the new value. Once you have these values, you can use the following formula:

**Increase = New value – Original value**

For example, suppose you had ten widgets in stock last month, and this month you have 20 widgets in stock. The increase in widgets would be:

**Increase = 20 – 10 = 10**

So, in the above example, you experienced a 10 widget increase in stock.

## What are the different types of increases?

There are two main types of increases, percentage increases, and flat increases. As previously mentioned, a percentage increase is the percentage that something has increased in relation to its original value. On the other hand, a flat increase measures the exact amount that something has increased.

### Cumulative increases

A cumulative increase is a series of increases that have occurred over a specific period of time. For example, if your website had 100 visitors in the first week and then 150 visitors in the second week, the cumulative increase would be 50 visitors. Each week’s visitor increase would be added to the previous week to calculate the cumulative increase.

### Seasonal increases

Seasonal increases are the changes in values that occur consistently throughout an observed period. For example, product sales might increase during the holiday season, or ice-cream sales might decrease in the winter. To calculate seasonal increases, you would need to identify the average change observed each time and compare the latest change to that.

## When do you use percentage increase vs flat increase?

The type of increase you use will depend on the context you’re using it for.

A percentage increase is usually used when you want to compare changes in values over a specific period or when you want to compare two or more values. Flat increase, on the other hand, is often used when you want to know the exact amount something has increased.

Both percentage increase and flat increase have their uses in different situations. The key is to understand the context of the change to determine which type of increase makes the most sense to use.

## How can you optimize increases for your business?

Increase is a valuable metric that businesses use to track their progress. If you want to optimize your increases to improve your business, consider the following:

**Track your increases regularly:**You cannot improve what you do not track. Analyzing your increases at regular intervals helps you spot trends and make informed decisions.**Use increases to motivate your team:**Keeping track of progress can help motivate your team.**Make data-driven decisions:**Using increases can help you make data-driven decisions.**Compare increases to industry benchmarks:**Understanding how your increases compare to other businesses in your industry can give you a sense of perspective and help you identify areas for improvement.

## Conclusion

Increase is a metric that shows how much something has changed over time. Whether it is a percentage increase or a flat increase, tracking increases is an essential part of measuring progress in any business. Understanding the different types of increases and how they are calculated is key to using increases to improve your business.

## Common Questions and Answers

**What is a percentage increase?****What is a flat increase?****What is a cumulative increase?****What is a seasonal increase?**

A percentage increase shows how much a value has increased in relation to its original value. To calculate the percentage increase:

**Percentage increase = (New value – Original value) / Original value x 100**

A Flat increase happens when a value increases by a fixed amount. For example, if your salary increases from $1,000 to $1,500, your flat increase is $500.

A cumulative increase is a series of increases that have occurred over a specific period of time. Each week’s visitor increase would be added to the previous week to calculate the cumulative increase.

Seasonal increases are the changes in values that occur consistently throughout an observed period.

## References

- How to Calculate Percentage Increase by TutorVista
- The Importance of Tracking Your Business’s Key Metrics by Entrepreneur
- How to Use Business KPIs and Metrics to Monitor Performance by Hubspot