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 (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, setting retail prices, and financial planning.

4. Using the Calculator

Tips: Enter the original price 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 (e.g., -10% for a 10% decrease).

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

Q3: How do I calculate multiple price increases?
A: Apply the formula sequentially for each increase, using the new price as the old price for the next calculation.

Q4: Does this work for compound increases?
A: For compound increases over time, you would need to use exponential growth formulas.

Q5: How do I reverse calculate the original price?
A: Use: Original Price = New Price / (1 + Rate/100)