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 — Original price before increase
• Rate — Percentage increase to apply
• New Price — Resulting price after increase

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

3. Practical Applications

Details: This calculation is essential for businesses adjusting prices due to cost increases, inflation adjustments, retail markups, salary increases, and financial forecasting.

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 (though this calculator only accepts positive values).

Q2: What's the difference between percentage increase and markup?
A: Percentage increase is based on the original price, while markup is typically based on cost price.

Q3: How does compounding price increases work?
A: For multiple increases, apply the formula sequentially or use (1 + rate1/100) × (1 + rate2/100) × original price.

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

Q5: How accurate is this calculation?
A: Mathematically precise, but actual price changes may involve rounding to standard price points.