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 adds the percentage increase (converted to decimal) to 1, then multiplies by the original price to get the new increased price.

3. Importance of Price Increase Calculation

Details: Accurate price adjustment is essential for businesses to maintain profitability, account for cost increases, and implement pricing strategies effectively.

4. Using the Calculator

Tips: Enter the original price in your currency, the percentage increase rate, and click calculate. Both values must be non-negative 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, or use (1 - Rate/100) instead of (1 + Rate/100).

Q2: What if I want to calculate the original price from the new price?
A: Rearrange the formula: Original Price = New Price / (1 + Rate/100).

Q3: How does compounding work with multiple price increases?
A: For sequential increases, apply the formula repeatedly: New Price = Old Price × (1 + Rate1/100) × (1 + Rate2/100)...

Q4: What's the difference between percentage increase and absolute increase?
A: Percentage increase is relative to the original price, while absolute increase is a fixed amount added (New Price = Old Price + Fixed Amount).

Q5: How do I calculate the percentage increase between two prices?
A: Percentage Increase = ((New Price - Old Price) / Old Price) × 100