Percentage decrease is a measure of percent change, which is the extent to which a variable loses intensity, magnitude, extent, or value.

Percentage decrease is sometimes used by shops advertise discounts on products. This concept is also used in the calculation of the percentage depreciation of an asset.

**Formula to calculate percentage decrease.**

- Begin by working out the difference of the initial value and the final value. The result is known as the decrease.
- Then divide the decrease by the original value and multiply by 100.

**Example:**

A car was bought at a price of $ 150,000. After two useful years, the owner decided to sell it at a price of $ 90,000. Calculate the percentage decrease of the car’s price.

We begin by working out the decrease.

Then divide the decrease by the initial value and multiply the result by 100.

Therefore, the percentage decrease of the car’s price is 40%.