The Money PagesTen Percent of What?
Ten percent of $10 and ten percent of $100 are different amounts.
“I earned ten percent!” says a character in a made-up example.
Ten percent of what?
- Ten percent of $10 is $1.
- Ten percent of $100 is $10.
- Ten percent of $110 is $11.
A percentage tells you how many parts out of a hundred. Ten percent means ten out of a hundred.
The same percentage gives different dollar amounts when the starting amount changes.
That's why you need both numbers: the percentage and the amount it applies to. In a growth example, earlier earnings may be part of the next starting amount. Real earnings aren't promised.
Money words
Percentage
A number of parts out of a hundred. Ten percent means ten out of a hundred.
The same percentage can mean different dollar amounts. Always check the amount it applies to.
