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Price Increase Percentage Calculator

Percentage Increase Formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

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1. What is Price Increase Percentage?

The Price Increase Percentage measures how much a price has risen compared to its original value. It's a key metric in economics, business, and personal finance to understand inflation, cost changes, and value appreciation.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

Where:

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 price increases helps businesses adjust pricing strategies, allows consumers to track inflation, and helps investors evaluate asset appreciation. It's fundamental for budgeting and financial planning.

4. Using the Calculator

Tips: Enter both prices in the same currency. The old price must be greater than zero. The calculator works for any currency by omitting the dollar sign if needed.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative result indicates a price decrease rather than an increase.

Q2: How is this different from percentage difference?
A: Percentage increase specifically measures growth from an original value, while percentage difference compares any two values without directionality.

Q3: Can I use this for salary increases?
A: Yes, the same formula works for calculating salary raises, budget increases, or any value growth.

Q4: What if the old price was zero?
A: The calculation is undefined when old price is zero (division by zero). This represents an infinite percentage increase from zero to any positive value.

Q5: How do I calculate compound annual growth rate?
A: For multi-period growth, you would need the CAGR formula which accounts for compounding over time.

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