“Grew by 300%” — why that’s four times, not three
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With a headline-grabbing result for $BTC , it’s easy to confuse profit growth with the final amount. Sometimes one word is enough to make expectations diverge noticeably from the math.
For example: you had $100, and now you have $400. The increase is $300, or 300% of the initial amount. The total capital has quadrupled.
A simple rule makes it easy to remember: final multiplier = 1 + growth percentage / 100. So +100% means 2×, +200% means 3×, and +300% means 4×. And tripling your capital corresponds to a 200% gain.
Declines create a different trap: after a 50% drop, you need a 100% increase to get back to the original amount. Percentages are calculated from the reduced base.
Before assessing someone else’s results, it’s worth clarifying: are we talking about an asset’s price, the account’s return, or the return on margin? Fees and the level of risk also affect the outcome.
Which headline would you fact-check first: “300% profit” or “capital tripled”?
...
With a headline-grabbing result for $BTC , it’s easy to confuse profit growth with the final amount. Sometimes one word is enough to make expectations diverge noticeably from the math.
For example: you had $100, and now you have $400. The increase is $300, or 300% of the initial amount. The total capital has quadrupled.
A simple rule makes it easy to remember: final multiplier = 1 + growth percentage / 100. So +100% means 2×, +200% means 3×, and +300% means 4×. And tripling your capital corresponds to a 200% gain.
Declines create a different trap: after a 50% drop, you need a 100% increase to get back to the original amount. Percentages are calculated from the reduced base.
Before assessing someone else’s results, it’s worth clarifying: are we talking about an asset’s price, the account’s return, or the return on margin? Fees and the level of risk also affect the outcome.
Which headline would you fact-check first: “300% profit” or “capital tripled”?