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Functional Skills Level 2 — Percentages

Reverse Percentages

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What Is a Reverse Percentage?

A reverse percentage problem works backwards from a normal one: instead of knowing the original amount and finding the new amount after a percentage change, you know the new amount and have to find what the original was before the change happened.

Original (unknown) = ? × 1.20 (20% increase) Normal % After increase = £60 ÷ 1.20 Reverse % Original = £50 £60 (known) WRONG ✗ £60 − 20% = £48? NO! 20% of £60 ≠ 20% of original CORRECT ✓ £60 ÷ 1.20 = £50 ✓ Always divide by the multiplier

You cannot simply subtract 20% from the new amount — that 20% is of the original, not the new price.

Example 1: After a 20% increase, a price is £60. What was the original?

Step 1

A 20% increase means the multiplier was 1.20.

Step 2

£60 = original × 1.20

Step 3

Original = £60 ÷ 1.20 = £50

Example 2: After a 30% increase, a salary is £39,000. What was the original salary?

Step 1

Multiplier = 1.30

Step 2

Original = £39,000 ÷ 1.30 = £30,000

⚠ Common mistake: Subtracting 20% from £60 gives £48, which is WRONG. Always divide by the multiplier.

✓ Quick Check 1 — What Reverse Percentages Mean

Reversing Decreases

For percentage decreases, the multiplier is less than 1. To reverse a 15% decrease, divide by 0.85.

Original = New amount ÷ multiplier  |  Increase: multiplier > 1  |  Decrease: multiplier < 1
Original £80 × 0.85 (15% decrease) Sale price £68 ÷ 0.85 Original £80 £68 (known) % Change Multiplier Reverse: divide by +10% increase 1.10 1.10 +20% increase 1.20 1.20 −10% decrease 0.90 0.90 −15% decrease 0.85 0.85 −20% decrease 0.80 0.80 −25% decrease 0.75 0.75

Example 3: A coat is in a 15% sale. Sale price is £68. What was the original price?

Step 1

15% decrease → multiplier = 0.85

Step 2

Original = £68 ÷ 0.85 = £80

Example 4: After a 20% reduction, a TV costs £320. What was the original price?

Step 1

Multiplier = 0.80

Step 2

Original = £320 ÷ 0.80 = £400

Example 5: A car has depreciated by 30%. It is now worth £14,000. What was the original price?

Step 1

Multiplier = 0.70

Step 2

Original = £14,000 ÷ 0.70 = £20,000

Quick check: After finding the original, multiply it by the multiplier — you should get back to the new amount.

Example 5b: Same problem, alternative method — the coat from Example 3 (sale price £68 after 15% off), using the unitary method

Step 1

A 15% reduction means the sale price is 85% of the original: 85% = £68.

Step 2

Find 1%: \(£68 \div 85 = £0.80\)

Step 3

Find 100%: \(£0.80 \times 100 = \mathbf{£80}\) — same answer as Example 3's divide-by-0.85 method.

💡 Two valid methods: Divide-by-multiplier (Examples 3-5) and the unitary method (find 1%, then ×100) always give the same answer — use whichever you find more natural. The unitary method can feel more intuitive when the percentage doesn't map to an obvious decimal, e.g. 85% → 1% → 100%.

✓ Quick Check 2 — Reversing Decreases

Real-Life Reverse Percentages

Three classic exam contexts: sale prices, VAT, and salary changes.

SALE — 30% OFF! Now only £56 inc VAT 30% off → multiplier = 0.70 Original = £56 ÷ 0.70 = £80 RECEIPT Price inc. VAT (20%) £120 VAT reg. no. 000-000-000 VAT = 20% → multiplier = 1.20 Pre-VAT = £120 ÷ 1.20 = £100 VAT amount = £120 − £100 = £20

Example 6: A price tag says "30% off, now £56." What was the original price?

Step 1

After 30% decrease → multiplier = 0.70

Step 2

Original = £56 ÷ 0.70 = £80

Example 7: A bill is £120 including 20% VAT. What is the price before VAT?

Step 1

Price with VAT = original × 1.20

Step 2

Pre-VAT price = £120 ÷ 1.20 = £100

Example 8: A worker's salary after a 4% pay rise is £31,200. What was the original salary?

Step 1

After 4% rise → multiplier = 1.04

Step 2

Original = £31,200 ÷ 1.04 = £30,000

✓ Quick Check 3 — Real-Life Reverse Percentages

Practice: Reverse Percentages

#QuestionAnswerResult
1After 20% increase: £60. Original?
2After 15% sale: £68. Original?
3Inc VAT 20%: £120. Pre-VAT?
4After 10% rise: £55. Original?
5After 25% off: £60. Original?
6After 5% rise: £210. Original?
7After 30% off: £56. Original?
8After 4% rise: £31,200. Original?
9After 8% rise: £270. Original?
10After 40% off: £42. Original?

⚠ Things to Watch Out For

  • Finding a percentage of the sale price: If an item costs £85 AFTER a 15% reduction, do NOT find 15% of £85. £85 is NOT 100%.
  • Identifying what represents 100%: The ORIGINAL price is 100%. After a 15% reduction, the sale price is 85%. Set up: 85% = £85, so 1% = £1, so 100% = £100.
  • Multiplier method — using wrong multiplier: A 15% reduction means the price is 85% of the original, so divide by 0.85. Not by 0.15 (that gives 15% of the sale price).
  • Applying a percentage instead of reversing: Don't multiply the sale price by the percentage. You need to DIVIDE by the multiplier to reverse the change.
  • Checking the answer: Apply the original percentage change to your answer and check you get back to the given amount. If not, something went wrong.
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