1. What is Percentage Price Increase?

Percentage price increase measures how much a price has risen compared to its original value, expressed as a percentage. It's a key metric in economics, finance, and business to track price changes over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Price — The current or increased price
• Old Price — The original price before increase

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

3. Importance of Price Increase Calculation

Details: Calculating percentage price increases helps businesses evaluate pricing strategies, consumers understand inflation effects, and investors analyze market trends.

4. Using the Calculator

Tips: Enter both prices in the same currency. Values must be positive numbers. The calculator will show the percentage increase from old to new price.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage increase and absolute increase?
A: Absolute increase is the numerical difference (New - Old), while percentage increase shows this difference relative to the original price.

Q2: How do I interpret a negative result?
A: A negative result indicates a price decrease rather than an increase.

Q3: Can I use this for salary increases?
A: Yes, the same formula works for calculating percentage increases in salaries, budgets, or any other values.

Q4: What if the old price was zero?
A: The calculation is undefined when old price is zero, as division by zero is impossible.

Q5: How does this relate to compound annual growth rate (CAGR)?
A: For multiple periods, CAGR provides the smoothed annual growth rate, while this shows simple percentage change between two points.