Basics of Percentage & Ratio Meaning, Formula, Differences & Examples

Percentage and Ratio are two of the most fundamental concepts in Quantitative Aptitude and form the backbone of topics asked in bank exams, insurance, and other competitive tests. A strong command over these basics not only improves your speed in the Quant section but also helps you solve advanced topics such as profit & loss, mixtures, data interpretation, time & work, and partnership. Here is a beginner-friendly guide to understanding both concepts clearly.

Basics of Percentage & Ratio

Percentage and Ratio are fundamental concepts in Quantitative Aptitude, forming the base for topics like Profit & Loss, Mixtures, Time & Work, and Data Interpretation in competitive exams. Percentage helps compare values out of 100 and measure increase or decrease, while Ratio compares two or more quantities and helps divide amounts proportionately. Understanding how to convert between ratios, percentages, and fractions simplifies calculations and boosts speed.

What Is Percentage?

A percentage represents a number out of 100. It is used to compare quantities, measure changes, express profit/loss, and represent data in an easily understandable form.

Formula:

Percentage=value/100

What Is Ratio?

A ratio compares two or more quantities of the same type.
Example: If Ram and Shyam earn ₹3000 and ₹6000, their earning ratio is 1 : 2.

Key Points:

• Ratios represent comparison, not actual values

• They can be simplified like fractions

• Ratios help in dividing amounts proportionately

Example:

If a sum of money is divided in the ratio 3 : 2, then:

• Total parts = 3 + 2 = 5

• Share 1 = 3/5 of total

• Share 2 = 2/5 of total

How Percentage & Ratio Are Connected

Percentage and Ratio are closely linked because both compare quantities, just in different forms. A percentage expresses a value out of 100, while a ratio compares parts of a whole. You can easily convert percentages to ratios and vice versa by using simple fraction-based calculations.

Examples:

• 50% = 1 : 1

• 40% and 60% = 2 : 3

• 25% and 75% = 1 : 3

This linkage is extremely useful in solving mixture, profit & loss, and partnership problems.

Quick Tricks for Exams

Quick tricks for exams focus on simple conversions and mental math to save time during calculations. Converting percentages to fractions, simplifying ratios, and using shortcut multiplication methods help solve questions faster. With regular practice, these techniques boost both speed and accuracy in competitive exams.

To convert % to fraction

Just divide by 100 and simplify.
Example: 40% → 40/100 = 2/5

To convert fraction to %

Multiply by 100.
Example: 3/4 → (3/4) × 100 = 75%

Ratio to percentage

If ratio is 2 : 3
Total = 5
Percentage of 2 → (2/5) × 100 = 40%

Percentage to ratio

If values are 30% and 70%
Ratio = 30 : 70 = 3 : 7

Practice Questions with Answers of Percentage & Ratio

1. The monthly incomes of two persons are in the ratio of 4: 5 and their monthly expenditures are in the ratio of 7: 9. If each saves 50 a month, then what are their monthly incomes?

A. Rs. 400, Rs 500

B. Rs 200, Rs 250

C. Rs 100, Rs 125

D. Rs 300, Rs 375

E. None of these

Answer: A

2. Madhu has three friends; Sonam, Divya, and Radha. The ratio of monthly income of Sonam and Divya is 5: 6 respectively and the ratio of the monthly income of Radha and Divya is 4: 3 respectively. The monthly income of Madhu is twice that of the total monthly income of all her three friends. If monthly income of Madhu is Rs 26600 then what is the highest monthly income of any of her friends?

A. Rs. 5500

B. Rs. 5600

C. Rs. 4600

D. Rs. 5400

E. Rs. 5800

Answer: B

3. Gajodhar and Manohar’s salary ratio was 3: 4 one year ago. The ratio of their individual salaries between last year’s and this year’s salaries are 4: 5 and 2 : 3 respectively. At present the total of their salary is 4160. The present salary of Gajodhar is?

A. 1200

B. 1400

C. 1600

D. 1800

E. None of these

Answer: C

4. A certain sum of money was divided among P, Q, and R in a certain way. Q received one-third of what P and R together did and P got one-fourth of what Q and R together did. Find the ratio of shares of P, Q, and R respectively.

A. 5 : 4: 11

B. 4: 5: 11

C. 5: 11: 4

D. 11: 4: 5

E. None of these

Answer: B

5. Sweeta is 10 years younger than her sister Seema who was 14 years old when her mother was 34 years old. The ratio of the ages of the mother and Sweeta after 6 years will be 2: 1. After how many years the average of their ages will be 39.33 years?

A. 3 years

B. 2 years

C. 4 years

D. 1 year

E. 5 years

Answer: B