1. What is a Price Increase Calculator?

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

Purpose: It helps businesses, retailers, and individuals calculate adjusted prices after planned increases.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P_{new} \) — New price (USD)
• \( P_{old} \) — Original price (USD)
• \( r \) — Increase rate (decimal)

Explanation: The original price is multiplied by (1 + rate) where the rate is 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.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How do I convert percentage to decimal?
A: Divide the percentage by 100 (e.g., 5% becomes 0.05).

Q2: Can I calculate price decreases?
A: Yes, enter a negative percentage (e.g., -10% for a 10% discount).

Q3: What if I want to calculate multiple increases?
A: Apply the calculator sequentially for each increase.

Q4: How precise are the calculations?
A: Results are accurate to two decimal places for currency.

Q5: Does this account for taxes or fees?
A: No, this calculates only the base price increase.