1. What is the Price Increase Calculator?

The Price Increase Calculator projects how prices will grow over time based on a constant annual rate of increase. It helps with financial planning, budgeting, and understanding inflation's impact.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

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

Explanation: The formula accounts for compounding effects 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 inflation.

4. Using the Calculator

Tips: Enter the current price, annual increase rate (as percentage), and number of years. All values must be valid (price > 0, rate ≥ 0, years ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this projection?
A: It assumes a constant rate of increase. Real-world prices may fluctuate more unpredictably.

Q2: Can I use this for salary projections?
A: Yes, it works for any value that grows at a constant percentage rate over time.

Q3: What if the rate changes each year?
A: For variable rates, you would need to calculate each year separately.

Q4: How does compounding work in this formula?
A: Each year's increase is calculated based on the previous year's total, not just the original amount.

Q5: Can I calculate decreases instead of increases?
A: Yes, just use a negative rate value for price decreases.