Illustration of 100 rising to 125 and falling to 93.75, with 1.25 times 0.75 equals 0.9375

Calculators & everyday math

Why a Percentage Decrease Doesn’t Undo an Increase

A price goes up 25%, then comes down 25%, and ends lower than where it started. It feels like a trick, but it follows directly from how percentages work. This guide explains why, how big the gap gets, and how to work out the percentage that really does reverse a change.

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The example

Start with 100. Up 25% gives 125. Down 25% takes off a quarter of 125, which is 31.25, leaving 93.75 — below the original 100.

Why it happens

Each percentage is taken of the number in front of it. The increase was 25% of 100; the decrease was 25% of 125, a bigger base, so it removed more than the increase added. In multiplier terms, 1.25 × 0.75 = 0.9375 — a combined 6.25% decrease, in whichever order the two changes happen.

The gap grows with the percentage

Going up and then down by the same percentage multiplies by 1 − (percentage ÷ 100)², so the loss is the square of the percentage: tiny for small changes, dramatic for large ones.

The gap grows with the percentage comparison
Up, then down byCombined multiplier100 ends at
10%0.9999
25%0.937593.75
50%0.7575
100%00

The percentage that really reverses a change

To undo an increase, decrease by increase ÷ (100 + increase) × 100 percent. To undo a 25% rise: 25 ÷ 125 × 100 = 20%. Check: 125 down 20% is 100.

To undo a decrease, increase by decrease ÷ (100 − decrease) × 100 percent. To recover from a 20% fall: 20 ÷ 80 × 100 = 25%. After a 50% fall, you need a 100% rise to get back.

Where this shows up

  • A sale price later “restored” by the same percentage ends up at a different price from the original.
  • Any measurement that falls by half has to double to recover.
  • Percentages quoted from different starting points can’t simply be added together or cancelled against each other.

Why Decreases Don’t Undo Increases FAQ

If something goes up 20% and then down 20%, where does it end?
4% lower than where it started, because 1.2 × 0.8 = 0.96.
Does the order matter?
No. Down 20% then up 20% also multiplies by 0.8 × 1.2 = 0.96.
What percentage decrease reverses a 50% increase?
About 33.33%: 50 ÷ 150 × 100. 100 up 50% is 150, and 150 down a third is 100.
What percentage increase reverses a 10% decrease?
About 11.11%: 10 ÷ 90 × 100. 100 down 10% is 90, and 90 up 11.11% is back to 100.
Is there a shortcut for the combined effect of two changes?
Multiply the two multipliers. A 30% rise and a 30% fall give 1.3 × 0.7 = 0.91, a 9% decrease overall.

Related guides

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Jump into Percentage Decrease Calculator when you are ready to process your files.

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