1. What is the Original Price Formula?

The Original Price Formula calculates the original price before a percentage increase was applied. This is useful for determining the base price when you know the final price after a markup or tax increase.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Final \) — Final price after percentage increase (currency)
• \( Rate \) — Rate of increase (unitless decimal, e.g., 0.1 for 10%)

Explanation: The formula reverses the percentage increase calculation to find the original price before the increase was applied.

3. Importance of Original Price Calculation

Details: Calculating the original price is important for financial analysis, budgeting, cost comparisons, and understanding the true impact of price increases or taxes on purchasing decisions.

4. Using the Calculator

Tips: Enter the final price in currency units and the rate as a decimal (e.g., 0.15 for 15%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert percentage to decimal for the rate?
A: Divide the percentage by 100. For example, 25% becomes 0.25, 8% becomes 0.08.

Q2: Can this formula be used for percentage decreases?
A: No, this specific formula is for reversing percentage increases. For decreases, a different formula would be needed.

Q3: What's the difference between this and discount calculations?
A: Discount calculations typically use: Original = Final / (1 - Discount Rate), which is the inverse of this formula.

Q4: How accurate is this calculation?
A: The calculation is mathematically precise when the percentage increase was applied correctly to the original price.

Q5: Can this be used for compound percentage increases?
A: No, this formula only works for a single percentage increase. Compound increases require more complex calculations.