1. What is the Price Increase Formula?

The price increase formula calculates the new price after applying a percentage increase to the original price. It's commonly used in retail, finance, and economics 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 (by dividing by 100), adds 1 to represent the original price plus the increase, then multiplies by the old price.

3. Practical Applications

Details: This calculation is used in retail pricing, salary increases, inflation adjustments, investment returns, and any scenario where prices or values need to be adjusted by a percentage.

4. Using the Calculator

Tips: Enter the original price in dollars (or your local currency) 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 rate value, or use (1 - Rate/100) for decreases.

Q2: What if I want to calculate multiple increases?
A: Apply the formula sequentially for each increase, using the new price from each step as the old price for the next.

Q3: How does this differ from compound interest?
A: This is a single increase, while compound interest applies increases repeatedly over time on the accumulated amount.

Q4: Can I use this for currency conversion?
A: No, this calculates percentage increases, not currency conversions which require exchange rates.

Q5: How precise should the percentage be?
A: For most applications, two decimal places (e.g., 5.25%) is sufficient, though the calculator accepts more precise values.