Pathwise

Mental Math: Calculate Fast in Your Head · Lesson 8 of 12 · 12 min

The percent swap, and percent change

Two things that save you daily: x% of y is the same as y% of x, and a price that goes up then down by the same percent does not come back. Stacked discounts too.

THE SWAP

x% of y equals y% of x

x% of y means x × y ÷ 100. Swap the two numbers and you get y × x ÷ 100, which is the same multiplication in a different order. So you are always allowed to put the awkward number in the percent slot and the easy one in front.

4% of 75 = 75% of 4 = 3. 8% of 125 = 125% of 8 = 10. 18% of 50 = 50% of 18 = 9.

4% of 75

hard way:   75 ÷ 100 = 0.75,  then × 4
swap:       75% of 4
            half of 4 = 2
            quarter of 4 = 1
            2 + 1 = 3

Output

3

The swap is worth doing whenever one of the two numbers is 4, 5, 8, 20, 25, 50 or 100. Those make lovely percentages, and awful things to take a percentage of.

Check yourself

A bank charges 8% on a transfer of 125. Swap it round. What's the fee?

  1. 10
  2. 12.5
  3. 100
Show the answer

10

Yes. 8% of 125 is 125% of 8, which is 8 plus a quarter of 8, so 10.

CHANGE

Up then down does not bring you home

A rise of 20% multiplies the price by 1.2. A fall of 20% multiplies it by 0.8. Do both and you have multiplied by 1.2 × 0.8 = 0.96, so you end 4% below where you started. The second percent is taken from a different, bigger number, which is why the two never cancel.

500,000 up 20% is 600,000. Then 20% off 600,000 is 120,000, not 100,000, so you land at 480,000.

a 500,000 price, up 20%, then down 20%

up:    10% of 500,000 = 50,000
       20%            = 100,000
       500,000 + 100,000 = 600,000

down:  10% of 600,000 = 60,000
       20%            = 120,000
       600,000 − 120,000 = 480,000

Output

480,000 — not 500,000

Notice the two corrections are different sizes, 100,000 and 120,000, because they are slices of different totals. That gap is the whole phenomenon.

Check yourself

A shop raises a 200 item by 10% for the season, then cuts it by 10% afterwards. The price is back at 200.

Show the answer

False

False. 200 goes up to 220, and 10% of 220 is 22, so it comes down to 198. You always end slightly below, because the cut is a slice of the bigger number.

Two discounts, one after the other

  1. A jacket at 1,000,000 with 30% off

    30% of 1,000,000 is 300,000, so the shelf price is 700,000. Or think of it as keeping 70%.

  2. Then a further 20% off at the till

    That 20% comes off the 700,000, not the original. 20% of 700,000 is 140,000.

  3. The final price is 560,000

    700,000 − 140,000 = 560,000. You kept 70% and then 80% of that, so you kept 56%.

  4. So the real discount is 44%, not 50%

    You paid 560,000 out of 1,000,000. Two discounts never simply add, because the second one is smaller than it looks.

Check yourself

A coat is 800,000. The sale takes 25% off, and a voucher takes a further 10% at the till. What does Negar pay?

  1. 520,000
  2. 560,000
  3. 540,000
  4. 600,000
Show the answer

540,000

Right. 25% off leaves 600,000, and 10% of that is 60,000, so she pays 540,000.

Check yourself

Apply each change and match it to the new number

Show the answer
  • 200, up 15% → 230
  • 200, down 15% → 170
  • 80, up 25% → 100
  • 80, down 25% → 60

Make it a habit

  • Before taking a percentage, ask whether the swap makes it easier. 16% of 25 is 25% of 16, which is 4.
  • Think in what you keep, not what you lose: 20% off means × 0.8, and two discounts multiply.
  • Any percent change asks 'percent of what?'. The answer is always the number you had just before.
  • A rise and a fall of the same percent always leave you slightly below the start, never exactly back.

Check yourself

The hard one. A 4,000,000 salary is cut by 10% in a bad year, then raised by 10% the next year. What is it now?

  1. 4,000,000
  2. 3,600,000
  3. 3,960,000
Show the answer

3,960,000

Exactly. The cut takes it to 3,600,000, and 10% of that is only 360,000, so the rise brings it to 3,960,000. Still 1% short.

Lesson recap

  • x% of y is always the same as y% of x, so put the awkward number in the percent slot.
  • A percent change is a multiplication: up 20% is × 1.2, down 20% is × 0.8.
  • Up then down by the same percent lands below the start, because each percent is taken from a different total.
  • Stacked discounts multiply what you keep: 30% off then 20% off leaves 56%, a 44% saving.

Keep it, don't just read it

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All lessons in this course

  1. Work left to right
  2. Round and fix
  3. Subtract by adding up
  4. Break it apart
  5. Doubling, halving and ×11
  6. Squares and near-squares
  7. Percent from building blocks
  8. The percent swap, and percent change
  9. Division and fractions in your head
  10. Estimate first
  11. Money maths
  12. Check yourself, and keep the skill