1. What is Price Increase Over Time?

This calculator computes how a price grows over time when subject to compound percentage increases. It's useful for understanding inflation, investment growth, or price escalations in contracts.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Price — Initial price amount
• Rate — Percentage increase per period
• Periods — Number of time periods

Explanation: The formula accounts for compounding effects where each period's increase is applied to the accumulated value from previous periods.

3. Importance of Price Increase Calculation

Details: Understanding price growth helps with financial planning, budgeting, investment decisions, and contract negotiations where prices may escalate over time.

4. Using the Calculator

Tips: Enter the original price, the periodic increase rate (as a percentage), and the number of periods. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between simple and compound price increases?
A: Simple increases apply the rate to the original price each period. Compound increases apply the rate to the current price, leading to exponential growth.

Q2: Can this calculator be used for investment growth?
A: Yes, it works the same way for calculating investment growth with compound interest.

Q3: What if the rate changes over time?
A: This calculator assumes a constant rate. For variable rates, you'd need to calculate each period separately.

Q4: How do I calculate monthly increases from an annual rate?
A: Divide the annual rate by 12 for monthly rate, and use months as periods.

Q5: Can this be used for price decreases?
A: Yes, simply enter a negative rate to calculate depreciation or price reductions.