Reductions refer to the amount of a decrease, such as a decrease in salary or a decrease in budget. Using a percentage to represent a reduction measures the amount of the reduction in relation to the original amount, rather than just a raw number. For example, a $5,000 decrease in salary for a president of a large company would be a lot less significant than a $5,000 decrease in salary for someone making $25,000 or $30,000 per year.
Subtract the final amount from the initial amount to find the amount of the reduction. For example, if your salary was $59,000 and it was reduced to $56,000, subtract $56,000 from $59,000 to find out the salary was reduced by $3,000.
Divide the amount of the reduction by the original amount to find the rate of reduction. In this example, divide $3,000 by $59,000 to get 0.0508.
Multiply the rate of reduction by 100 to find the percentage reduction. In this example, multiply 0.0508 by 100 to get a 5.08 percent reduction.