1. What is the Percentage Increase Formula?

The percentage increase formula calculates the relative increase between an old value and a new value, expressed as a percentage of the old value. It's commonly used in economics, finance, and business to measure price changes, growth rates, and inflation.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Price — The current or increased price
• Old Price — The original price before increase

Explanation: The formula shows what percentage the new price has increased compared to the original price.

3. Importance of Price Increase Calculation

Details: Calculating price increases helps businesses track inflation, adjust pricing strategies, and understand market trends. It's also essential for consumers to understand how much more they're paying for goods and services.

4. Using the Calculator

Tips: Enter both old and new prices in dollars. Both values must be positive numbers. The calculator will show the percentage increase between the two values.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage increase and absolute increase?
A: Absolute increase is the simple difference (new - old), while percentage increase shows the relative change compared to the original value.

Q2: How do I calculate a price decrease?
A: The same formula works - the result will be negative if the new price is lower than the old price.

Q3: What if the old price is zero?
A: The calculation is undefined (division by zero). This calculator requires a positive old price.

Q4: How is this different from markup percentage?
A: Markup is calculated on cost price, while percentage increase compares any two values (like retail prices at different times).

Q5: Can I use this for non-price calculations?
A: Yes, the formula works for any measurable quantity (population growth, test scores, etc.).