1. What is the Price Increase Calculator?

The Price Increase Calculator projects how prices will grow over time based on a consistent annual percentage increase. It's useful for financial planning, budgeting, and understanding inflation effects.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Price — Initial price amount
• Rate — Annual percentage increase rate
• Years — Number of years for projection

Explanation: The formula accounts for compound growth where each year's increase builds on the previous year's total.

3. Importance of Price Projection

Details: Understanding future price changes helps with long-term financial planning, investment decisions, and budgeting for future expenses.

4. Using the Calculator

Tips: Enter the current price, expected annual increase rate (%), and number of years to project. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this the same as compound interest?
A: Yes, the calculation works the same way as compound interest, just applied to prices instead of investments.

Q2: How accurate are these projections?
A: They assume a constant rate of increase, which may not reflect real-world variability in inflation or price changes.

Q3: Can I use this for salary projections?
A: Yes, it can estimate future salary based on expected annual raises, though actual raises may vary.

Q4: What if the rate changes each year?
A: This calculator assumes a constant rate. For variable rates, you'd need to calculate year-by-year.

Q5: How does this compare to simple interest?
A: Compound growth (this calculator) results in faster growth than simple interest because each year's increase is calculated on the accumulated total.