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Percent Increase In Price Calculator

Percentage Increase Formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

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1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount, expressed as a percentage. It's commonly used to analyze price changes, growth rates, and performance improvements.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

Where:

Explanation: The formula calculates the difference between new and old price, divides by the original price to get relative change, then converts to percentage by multiplying by 100.

3. Importance of Percentage Increase Calculation

Details: Calculating percentage increase helps in financial analysis, pricing strategies, investment decisions, and understanding inflation or cost changes over time.

4. Using the Calculator

Tips: Enter both new and old prices in the same currency units. The old price must be greater than zero for valid calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage increase mean?
A: A negative result indicates a percentage decrease rather than increase, meaning the new value is lower than the original.

Q2: How is this different from percentage points?
A: Percentage increase measures change relative to the original value, while percentage points measure absolute difference between two percentages.

Q3: Can I use this for non-price calculations?
A: Yes, the formula works for any quantitative measurement (quantities, sizes, etc.) not just prices.

Q4: Why is the old price in the denominator?
A: Using the original value as reference point shows how much change occurred relative to the starting point.

Q5: How do I interpret a 100% increase?
A: A 100% increase means the value has doubled (become twice the original amount).

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