1. What is Price Increase Calculation?

The price increase calculation determines the new price after applying a percentage increase to the original price. This is commonly used in retail, finance, and business to adjust prices for inflation, markup, or other factors.

2. How Does the Calculator Work?

The calculator uses the price increase formula:

Where:

• Old Price — The original price before increase
• Rate — The percentage increase to apply
• New Price — The resulting price after increase

Explanation: The formula converts the percentage rate to a decimal multiplier (1 + rate/100) and applies it to the original price.

3. Importance of Price Increase Calculation

Details: Accurate price adjustment is essential for maintaining profit margins, adjusting for inflation, and implementing pricing strategies in business operations.

4. Using the Calculator

Tips: Enter the original price in dollars and the percentage increase you want to apply. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a price decrease?
A: Use the same formula but with a negative percentage rate (though this calculator only accepts positive values).

Q2: What's the difference between markup and margin?
A: Markup is the percentage added to cost price, while margin is the percentage of the selling price that's profit.

Q3: How does compound price increase work?
A: For multiple increases, apply each percentage sequentially to the new price rather than adding percentages.

Q4: Can I use this for salary increases?
A: Yes, the same formula applies to calculating new salary after a percentage raise.

Q5: How do I reverse-calculate the original price?
A: To find the original price before an increase: Original Price = New Price / (1 + Rate/100).