What is a price increase and how is it calculated?

A price increase is the difference between a product's new price and its original price, typically expressed as a percentage. It is calculated by finding the absolute change in price, dividing it by the starting price, and multiplying by 100 to get the rate of increase.

Formula

Price Increase % = ((New Price − Old Price) ÷ Old Price) × 100

Worked Example

A coffee price rises from $4.00 to $4.50:

1. Change: $4.50 − $4.00 = $0.50
2. Ratio: $0.50 ÷ $4.00 = 0.125
3. Percent: 0.125 × 100 = 12.5%

Result: The price increased by 12.5%.