You might be thinking to yourself, why is this blog post on such a nitpicky topic. Well, turns out that your Math teachers are right, you really will be using it in the real world. A common thing that you’re going to need to be doing, especially if you’re an investor or in the real estate industry, is calculating percentages in your head quickly, and efficiently. To have an edge over your buyers and competition, you need to be able to understand math. Percentages come in handy especially when discussing prices, valuation bumps and other things that require percentage increases or decreases.
Today I would like to share a few tips and tricks on how to calculate percentages in your head quickly and efficiently. Let’s get right into it.
- Right off the bat, there are some percentages that are really easy to calculate in your head. 100% is full value. 50% means half, 25% means 1/4 and 75% means 3/4 .
- Finding 10% is one of the most useful and easiest percent operations. Simply move the decimal point left one space. So if you wanted 10% of 752, you would move the decimal place over one spot, and end up was 75.2. From then it’s much easier to find 5% 2% and other smaller percents.
- You can use the 10% mental calculation as a stepping stone to make the 2%, 3%, and 4% calculations much easier to do mentally.
- On the top of that, 5% is simply half of 10%. Find 10% of a number, and then divided by 2. Silver 5% of 6482, it would be 324.1.
- Regarding small percents, 1% is almost as easy as 10%. Simply move the decimal point over two spaces instead of one. For example, if you wanted to find 1% of 7446, you’d move the decimal place over to points, and end up was 74.46.
- Now, here’s where it becomes very easy. You can quickly and simply find percents with a multiple of 5 in them. For example 15% of 46 would be 10% + 5%. 10% of 46 is 4.6, and 5% of 46 is 2.3. Add those two valleys together, and you would end up with 6.9 your final value, being 15% of the original.
- You can use this addition method for any percentage with a multiple of 5 in it. Say you wanted to find 60% of 782. Simple. Find 50% of 782, and find 10% of 782. Then add the two final Valley’s together. 50% of 782 would be 391, and 10% of 782 would be 78.2. Add these two together and you would end up with 60% of the original value, 469.2.
- If you can grasp this topic, you can go on to use the addition method for any percentage:
- 17% of 300=? Break 17% into 10% + 5% + 2%.
167% of 195=? One way to break it up is 100%+50%+10%+5%+2%.
16% of 42 would be 10%+5%+1%.
- In real estate, you want to be very quick with small percentages. You’ll be using these when calculating rent increases as well as some other things. Usually, these percentages are under 5, so you can simply add up (Or multiply) the 1%, until you get to the percent that you need.
- So you need 3% of 4392. First, you find 1%, or 43.92. Then out of this final value three times, to get 3%. it ends up being 131.76.
- If decimal places make it difficult for you, simply round it off. When you’re in situations that require this quick Mental Math, you don’t need to be absolutely precise, you just need to be in the ballpark. So in the case of the example above, you would round off the 1% value to 44. If you’re trying to find 3% of that, multiply 44 * 3. This is easier to do in your head and results with a similar value of 132. Same goes for odd numbers.
- If you have difficulty multiplying odd numbers quickly in your head, just add on another one to make it an even number. For example, if it’s 43, and you have difficulty multiplying threes, add on a 1 to get 44. Then multiply that.
I won’t provide you with any practice, but a simple Google search will give you sheets upon sheets of percentage questions that you can easily calculate in your head with this addition method. I hope this post was helpful on teaching you a necessary, but nitpicky skill that you will be using in investing, business, finance and real estate.
Learn it now, so I don’t say ” I told you so” later.