1. What is the Price Increase Calculator?

The Price Increase Calculator helps determine the new cost after a percentage increase is applied to the original price. This is particularly useful for energy price adjustments, budgeting, and financial planning.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Old Cost — Original price before increase
• Rate — Percentage increase rate
• New Cost — Resulting price after increase

Explanation: The formula calculates the increased amount by multiplying the old cost by 1 plus the rate (converted from percentage to decimal).

3. Importance of Price Increase Calculation

Details: Understanding price increases is crucial for budgeting, financial forecasting, and evaluating the impact of rate changes on expenses, especially in energy costs where small percentage changes can significantly affect total expenses.

4. Using the Calculator

Tips: Enter the original cost in dollars and the percentage increase rate. Both values must be positive numbers (rate can be zero).

5. Frequently Asked Questions (FAQ)

Q1: Can this calculator handle price decreases?
A: No, this calculator is designed for price increases only. For decreases, you would need to input a negative rate (not supported in this version).

Q2: How precise are the calculations?
A: Calculations are precise to two decimal places (cents) for currency values.

Q3: Can I use this for non-energy related calculations?
A: Yes, this calculator works for any price increase scenario, though it's optimized for energy price calculations.

Q4: What's the maximum rate I can input?
A: There's no technical maximum, but extremely high rates may not reflect realistic scenarios.

Q5: Does this account for compounding increases?
A: No, this calculates a single price increase. For compounding increases, you would need to run multiple calculations.