1. What is a Price Increase Calculator UK?

Definition: This calculator determines the new price after applying a percentage increase to an original price in GBP.

Purpose: It helps businesses and individuals calculate adjusted prices after rate increases, inflation adjustments, or markup calculations.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P_{new} \) — New price (GBP)
• \( P_{old} \) — Original price (GBP)
• \( r \) — Increase rate (as decimal, e.g., 5% = 0.05)

Explanation: The original price is multiplied by 1 plus the rate increase (converted from percentage to decimal).

3. Importance of Price Increase Calculation

Details: Accurate price adjustments are crucial for maintaining profit margins, budgeting, and financial planning in inflationary periods.

4. Using the Calculator

Tips: Enter the original price in GBP and the percentage increase rate. Both values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate a price decrease?
A: Enter a negative percentage (though this calculator currently only accepts positive values).

Q2: Does this account for VAT or other taxes?
A: No, this calculates the base price increase. Taxes should be applied after if applicable.

Q3: Can I use this for salary increases?
A: Yes, the same formula applies to calculating new salaries after percentage raises.

Q4: How do I reverse-calculate the original price?
A: Use \( P_{old} = P_{new} / (1 + r) \) if you know the new price and increase rate.

Q5: What's the difference between percentage points and percentage?
A: This calculator uses standard percentage increases (e.g., 5% means multiply by 1.05).