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What is a successive percentage change?
It is one percentage change followed by another, where the second is measured on the result of the first. Think in multipliers: a 50% rise is ×1.5, a 50% fall is ×0.5, and two changes in a row are two multiplications. 1.5 × 0.5 = 0.75, a 25% fall. You never add percentages; you multiply factors.
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Start2,000 followersThe original base. Every net answer is compared with this.
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×1.5
Week 1+50% → 3,00050% of 2,000 = 1,000 gained.
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×0.5
Week 2−50% → 1,50050% of 3,000 = 1,500 lost. Bigger base, bigger fall.
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×0.75
Net−25% overall1,500 is 75% of 2,000.
How do you calculate successive percentage change?
Multiply the factors and expand: (1 + a/100)(1 + b/100) = 1 + a/100 + b/100 + ab/10,000. Strip the 1, multiply by 100, and the net change is a + b + ab/100. The first two terms you expected. The third is the one everybody forgets.
Picture a 100 × 100 square (area 10,000). Stretch the length 20% and the breadth 10%. You gain a 20 × 100 strip (20%), a 10 × 100 strip (10%) and a 20 × 10 corner of 200 units, which is 2%. That corner is ab/100: growth on growth. 120 × 110 = 13,200, a 32% rise.
Figures are not to scale.
Why doesn't a rise and an equal fall cancel out?
Put b = −a in the formula: a − a − a²/100 = −a²/100. Always a loss, and it grows with the square of the swing. That is why a share that crashes 50% needs a 100% rise just to get back.
Loss = x²/100. Double the swing and the loss quadruples.
Successive percentage change: worked examples
- 1Net = 20 + 10 + (20 × 10)/100 = 30 + 2 = 32%.
- 2New amount = 1,500 × 1.32 = ₹1,980. Check: 1,500 → 1,800 → 1,980.
- 1Net = −25 + 40 + (−25 × 40)/100 = 15 − 10 = +5%.
- 2Final = 80,000 × 1.05 = ₹84,000. Check: 80,000 → 60,000 → 84,000.
- 1Bill = price × usage. Price factor 1.6; the total factor must stay 1.
- 2Usage factor = 1 ÷ 1.6 = 0.625, a cut of 37.5%. Rule: r/(100 + r) × 100 = 60/160 × 100.
- 3Check: 60 − 37.5 + (60 × −37.5)/100 = 22.5 − 22.5 = 0. ✔
- 1First two: 10 + 20 + 2 = +32%.
- 2Then +32 with −25: 32 − 25 + (32 × −25)/100 = 7 − 8 = −1%.
- 32026 sales = 12,000 × 0.99 = 11,880 (12,000 → 13,200 → 15,840 → 11,880).
What is the fastest way to solve successive percentages?
Decimals slow you down. Turn each change into a fraction multiplier and let numbers cancel. The last column gives the change that exactly undoes each one: that is how "keep the bill the same" questions die in one line.
| Change | Multiplier | As a fraction | Undone by |
|---|---|---|---|
| +10% | × 1.1 | 11/10 | −9.09% (1/11) |
| +20% | × 1.2 | 6/5 | −16⅔% (1/6) |
| +25% | × 1.25 | 5/4 | −20% (1/5) |
| +50% | × 1.5 | 3/2 | −33⅓% (1/3) |
| −10% | × 0.9 | 9/10 | +11⅑% (1/9) |
| −20% | × 0.8 | 4/5 | +25% (1/4) |
| −25% | × 0.75 | 3/4 | +33⅓% (1/3) |
| −33⅓% | × 0.667 | 2/3 | +50% (1/2) |
How does successive change hide in a CLAT caselet?
CLAT rarely says "successive". It hides the rule in a quantity that is a product, then changes both factors. Spot the product and the formula is instant.
Mini caselet: a Ward 7 household paid ₹500 a month for water in 2023. In 2024 the tariff rose 20% and use fell 10%. In 2025 the tariff rose 25% and use fell 20%.
Overall 2023 → 2025: combine +8% and 0% = +8%. The tariff rose 50% in two years, yet the bill rose just 8%.
Questions write themselves. Bill change 2023 → 2025? +8%. Change in water use over two years? −10 − 20 + 2 = −28%, not −30%.
When does a + b + ab/100 fail?
How CLAT asked it
The Municipality of a town increases water tax by 20% and water consumption decreased by 20%. Then the percentage of increase or decrease in the monthly expenditure is:
Reveal answer + reasoning
- A — Right size, wrong sign. An equal rise and fall never ends above the start.
- C — No valid route gives 5%.
- D — A guess near 4%; the loss is exactly 20²/100.
Suman saves 10% of her monthly salary. Now her expenditure increases by 30% and savings increases by 50%. The present increase in her salary is
Reveal answer + reasoning
- A — Below 30%, impossible when every part rose at least 30%.
- B — Ignores the 50% rise in savings.
- D — The simple average of 30 and 50; expenditure carries 90% of the weight.
If the expenditure on food and entertainment is increased by 10% due to inflation in prices, what will be the new percentage of savings in the same monthly salary?
Reveal answer + reasoning
- A — Takes 3.6 points off; the options sit 0.2 apart, so only exact 3.4 works.
- C — Takes 3.2 points off.
- D — Takes 3.8 points off.
🙅 Myth
A 30% rise then a 30% fall brings you back to the start.
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🙅 Myth
Falling first and rising later is kinder.
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🙅 Myth
Two 10% increases make 20%.
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🙅 Myth
Any two changes in a caselet combine with a + b + ab/100.
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Q1. What is the net change from the original price?
30 − 30 − 9 = −9%.Q2. What happens to its area?
Area is a product: 20 − 10 − 2 = +8%.Q3. By what percentage must he cut the number of rides?
×3/2 is undone by ×2/3, a fall of 33⅓%.Q4. What is the total growth over the three months?
1.1³ = 1.331, so 33.1%.Q5. By what percentage does her total spending rise?
Parts add: 0.7 × 10 + 0.3 × 20 = 13%. A and B are the formula trap.- Each change acts on the new value: percentages multiply, never add.
- Two changes: a + b + ab/100, falls negative.
- Equal rise and fall end x²/100 below the start, in either order.
- Three or more changes: fold two at a time, or multiply factors.
- Products use the formula; parts of a total use a weighted average.
- Net change: a + b + ab/100 %.
- Multipliers: final = initial × (1 + a/100)(1 + b/100)(1 + c/100) …
- Equal rise and fall: −x²/100 %.
- Same rate r, n times: initial × (1 + r/100)n (growth, CI).
- Keep a product constant: rise r% → cut r/(100 + r) × 100 %; fall r% → raise r/(100 − r) × 100 %.
- Pairs: +25% ↔ −20%, +50% ↔ −33⅓%, +20% ↔ −16⅔%, +60% ↔ −37.5%.
- Parts of a total: Σ (share × change).
Frequently asked questions
What is the formula for successive percentage change?
Does the order of successive percentage changes matter?
How do I combine three successive percentage changes?
Is successive percentage change the same as compound interest?
When should I not use the a + b + ab/100 formula?
Keep going
Connected topics in other chapters
Every topic in Percentages
- 1.Fractions, Decimals and Percents: One Number, Three Outfits
- 2.Percentage Increase, Decrease and "% More Than"
- 3.Successive Percentage Change: the a + b + ab/100 Rule (you're here)
- 4.Reverse Percentage: Finding the Original Number
- 5.Population Growth and Depreciation
- 6.Percentage Points vs Percent: Two Answers, One Change
- 7.Budgets and Pie Charts: Percentage Share
- 8.Caselet DI: Turning a CLAT Quant Passage into a Table
- 9.Percentage Shortcuts and Approximation