You don't need A-Level Maths to study A-Level Economics. Most of the mathematics involves skills you will already have met at GCSE: percentages, ratios, averages, graphs and straightforward calculations.
But there is an important difference. In economics, you need to understand what the numbers actually mean.
For example, calculating that house prices have risen by 6% is useful. But you may also need to explain why prices have risen and what the consequences might be.
For AQA and Edexcel, at least 20% of A-Level Economics marks assess quantitative skills. That doesn't mean a fifth of the exam is a separate maths test. These skills are assessed within economic questions and include interpreting numerical information and graphs.
Let's look at the main types of maths you will encounter.
Ratios and Percentages
Economists regularly compare one figure with another.
Suppose a business has annual sales of £200 million in a market worth £800 million.
Its market share is:
£200m ÷ £800m × 100 = 25%
The firm therefore accounts for 25% of total market sales.
Ratios are another way of making comparisons. For example, a household with £60,000 of debt and an annual income of £30,000 has a debt-to-income ratio of 2:1.
The important thing is to understand what you are comparing and which figure you should divide by which.
Percentage Change
This is one of the most useful calculations in economics.
The formula is:
Percentage change = (New value − Original value) ÷ Original value × 100
Suppose average house prices rise from £250,000 to £265,000.
The increase is £15,000.
So:
£15,000 ÷ £250,000 × 100 = 6%
House prices have increased by 6%.
Remember to divide by the original figure, not the new one. You are measuring the change relative to where you started.
Percentage Points
Percentages and percentage points are not the same thing.
Suppose inflation rises from 2% to 3%.
That is an increase of 1 percentage point.
But the inflation rate itself has increased by 50%, because:
(3 − 2) ÷ 2 × 100 = 50%
Both statements are correct. They are simply measuring different things.
The same distinction applies when comparing interest rates, unemployment rates and other figures expressed as percentages.
Averages: Mean and Median
Economists use averages to summarise large amounts of information.
Consider five annual salaries:
£20,000, £22,000, £24,000, £26,000 and £108,000.
The total is £200,000. Divide this by five and we get a mean salary of £40,000.
But four of the five people earn considerably less than that.
The median is the middle value when the figures are arranged in order. In this example, it is £24,000.
The median may therefore give us a better idea of what a typical person in this group earns.
This matters when interpreting economic statistics. A small number of very high incomes, for example, can push the mean upwards.
Index Numbers
Index numbers help economists measure changes over time. The Consumer Prices Index (CPI), for example, measures changes in the prices of a basket of goods and services.
One period is chosen as the base and given an index value of 100.
Imagine a basket of goods cost £100 in the base year.
If its price rose to £120, the index would be 120. Prices would be 20% higher than in the base year.
Now suppose the basket costs £126. The index is 126, meaning prices are 26% higher than in the base year.
But how much have prices risen from £120 to £126?
The answer is not 6%, because we are now comparing the new price with £120, not the original £100.
The calculation is:
(126 − 120) ÷ 120 × 100 = 5%
So although the index has risen by 6 points, prices have increased by 5% since the previous period.
The important lesson is to check which starting point you are comparing against.
Costs, Revenue and Profit
Businesses need to understand how much they earn from sales and how much production costs.
Suppose a firm sells 1,000 products at £20 each.
Total revenue = Price × Quantity
£20 × 1,000 = £20,000
If total production costs are £16,000:
Profit = Total revenue − Total cost
£20,000 − £16,000 = £4,000
We can also calculate average cost:
Average cost = Total cost ÷ Quantity produced
£16,000 ÷ 1,000 = £16 per unit
You will encounter other cost and revenue calculations later in the course, but they build on similar mathematical principles.
Nominal and Real Values
Imagine your wages rise by 4%, but prices rise by 6%.
You are receiving more money, but you can actually afford to buy less.
Economists therefore distinguish between nominal and real values.
Nominal values are measured in money at the time.
Real values are adjusted to take account of changes in prices.
Suppose your salary was £30,000 in a base year when the price index was 100.
A few years later, you earn £36,000, but the price index has risen to 120.
Although your salary has increased by 20%, prices have also risen by 20%, so your purchasing power is unchanged.
To calculate your salary in base-year prices:
Real value = Nominal value ÷ Price index × 100
£36,000 ÷ 120 × 100 = £30,000
This is why economists distinguish between increases in money values and genuine increases in purchasing power.
Elasticity
Elasticity measures how strongly one variable responds to a change in another.
For example, if the price of a product rises, how much less will consumers buy?
Economists use price elasticity of demand to measure this response.
Price elasticity of demand = % change in quantity demanded ÷ % change in price
Suppose a 10% increase in price causes the quantity demanded to fall by 5%.
−5 ÷ 10 = −0.5
The negative sign indicates that price and quantity demanded have moved in opposite directions.
The result also tells us that demand is relatively unresponsive to the price change. Economists call this price inelastic demand.
You will explore elasticity in much more detail during the course. For now, notice that the calculation simply involves dividing one percentage change by another.
Reading Graphs and Economic Data
Some of the most important mathematical skills in economics involve interpreting graphs, charts and tables rather than doing calculations.
You will also learn to draw economic diagrams, including demand and supply curves, and use them to explain changes in markets.
Suppose inflation was 5% and annual wage growth was 3% in 2025.
In 2026, inflation fell to 3%, while wage growth increased to 4%.
What can we learn from these figures?
Inflation has fallen by 2 percentage points. But that does not mean prices are falling. They are still rising, just more slowly.
Meanwhile, wage growth has increased from 3% to 4%.
In 2025, wages were rising more slowly than prices, so real wages were falling. In 2026, wages were rising faster than prices, so real wages were increasing.
No complicated calculation was needed. The important skill was understanding what the figures were telling us.
This is equally important when reading graphs. Always check the axes, units and dates before drawing conclusions.
So, Is the Maths Difficult?
If you are reasonably comfortable with GCSE-level percentages, ratios, averages and graphs, you already have much of the mathematical foundation needed for A-Level Economics.
You will encounter some unfamiliar formulas and calculations as the course progresses, but you will learn them alongside the economic concepts they help to explain.
The most important habit is to ask one question after every calculation:
What does this result actually tell me?
That is where the maths becomes Economics.
Related Reading
Do You Need Maths for A-Level Economics?
Find out whether you need to take A-Level Maths alongside Economics.
How to Build a Chain of Analysis in A-Level Economics
Learn how to turn economic facts and figures into clear explanations.