Price increase calculator: new price, percentage and what it does to margin
This price increase calculator does the three everyday price sums: the new price after a percentage increase, the percentage between an old and a new price, and the original price before an increase. It also compounds several increases one after another, shows the price over the years if the same increase repeats, and — with a unit cost — what the increase does to your profit margin and markup.
It is written for shop owners, freelancers and buyers alike: check a supplier’s price rise, plan your own, or see how many sales you could lose after raising prices before total profit falls.
How to use the Price Increase Calculator
- Choose the currency and what to calculate: New price, Increase % or Original price.
- Enter the two values that mode needs: old price and %, old and new price, or new price and %.
- Optionally add further increases, such as “3, 4”, to compound them after the first.
- Set the number of years for the price path.
- Enter a unit cost (and a cost increase, if any) to see margin, markup and the sales you can lose.
Price Increase Calculator features
Three directions
New price, increase percentage, or original price before the increase.
Compounding
Successive increases multiply, so 8%, 3% and 4% make 15.69%, not 15%.
Over the years
Year-by-year prices for a repeating increase, or the steady yearly rate between two prices.
Margin impact
Margin and markup before and after, the price that keeps your margin, and the sales cushion.
Private
Runs entirely in your browser.
Price increase formulas
New price = old price × (1 + increase ÷ 100). An 8% increase on $40 gives $40 × 1.08 = $43.20.
Price increase percentage = (new price − old price) ÷ old price × 100. From $50 to $56 is (56 − 50) ÷ 50 × 100 = 12%.
Original price = new price ÷ (1 + increase ÷ 100). A $69 price after a 15% rise was $69 ÷ 1.15 = $60 — not $69 minus 15% of $69 ($58.65), the usual mistake.
Several increases multiply: (1.08 × 1.03 × 1.04 − 1) × 100 = 15.69%. Over years, a price that rises 8% a year is $40 × 1.08⁵ = $58.77 after five years; and a price that went from $50 to $56 in five years rose by an average of 2.29% a year (the compound rate).
What a price increase does to your margin
Margin is profit as a share of the price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. With a $25 cost, a $40 price is a 37.5% margin and a 60% markup; raising the price 8% to $43.20 lifts the margin to 42.13% and the markup to 72.8%, while the cost stays the same.
Profit a unit rises from $15 to $18.20, so you could sell 17.58% fewer units and still earn the same total profit (1 − 15 ÷ 18.20). That is the cushion to weigh against customers you might lose. A price cut works the other way: 10% off $40 cuts the profit a unit to $11, so you need 36.36% more sales just to stand still.
If your cost is rising too, enter the cost increase: the tool shows the price that keeps your current margin percentage. For detailed pricing use the profit margin calculator or the markup calculator, and the break-even calculator for fixed costs.
Limits
- The sales cushion assumes fixed costs stay the same and covers variable cost a unit only.
- Prices are not rounded to price points such as $42.99; round them yourself.
- Tax (GST or VAT) is not included unless your prices include it.
Price Increase Calculator FAQ
How do I calculate a price increase percentage?
Subtract the old price from the new price, divide by the old price and multiply by 100. $56 − $50 = $6; $6 ÷ $50 × 100 = 12%. Choose “Increase %” to do it instantly.
How do I add a percentage increase to a price?
Multiply the price by 1 plus the percentage as a decimal: $40 × 1.08 = $43.20 for 8%.
How do I find the original price before an increase?
Divide the new price by 1 plus the percentage: $69 ÷ 1.15 = $60. Choose “Original price”.
How do I calculate price increases over several years?
Multiply by (1 + rate) once for each year, or by (1 + rate)^years. At 8% a year, $40 becomes $58.77 after five years. The price path table lists every year.
Are two 5% increases the same as a 10% increase?
No. They make 10.25%, because the second increase applies to the higher price: 1.05 × 1.05 = 1.1025.
How many customers can I lose after a price increase?
If profit a unit goes from P₀ to P₁, you can lose 1 − P₀ ÷ P₁ of unit sales and keep the same total profit. Enter a unit cost to see it.