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 1 to the rate (converted from percentage to decimal) and multiplies it 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 currency format and the percentage increase you want to apply. Both values must be positive 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) for percentage decreases.

Q2: What if I want to calculate the original price from the new price?
A: You can rearrange the formula: Old Price = New Price / (1 + Rate/100)

Q3: Does this work for compound increases over multiple periods?
A: No, this calculates a single increase. For compound increases, you would need to apply the formula repeatedly.

Q4: How precise are the calculations?
A: The calculator provides results rounded to 2 decimal places (cents) for currency values.

Q5: Can I use this for non-currency calculations?
A: Yes, the formula works for any numeric values where you need to apply a percentage increase.