1. What is Percentage Price Increase?

Percentage price increase measures how much a price has grown relative to its original value, expressed as a percentage. It's a fundamental financial metric used in economics, business, and personal finance to understand price changes over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Price — Current or final price
• Old Price — Original or initial price

Explanation: The formula calculates the difference between new and old price, divides by the old price to get relative change, then multiplies by 100 to convert to percentage.

3. Importance of Price Increase Calculation

Details: Understanding price increases helps with budgeting, financial planning, investment analysis, and evaluating inflation impact. Businesses use it for pricing strategies and cost analysis.

4. Using the Calculator

Tips: Enter both prices in the same currency unit. Old price must be greater than zero. The result shows how much the price has increased as a percentage of the original price.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative result indicates a price decrease rather than an increase.

Q2: How is this different from percentage difference?
A: Percentage increase is directional (new vs old), while percentage difference is symmetrical (difference relative to average).

Q3: Can I use this for salary increases?
A: Yes, the same formula works for calculating salary increases, budget changes, or any value change over time.

Q4: What if the old price was zero?
A: The calculation is undefined when old price is zero, as you can't divide by zero.

Q5: How do I interpret a 100% increase?
A: A 100% increase means the price has doubled (become twice the original amount).