Enter the previous year cost ($) and the inflation rate (%) into the Inflation Cost Calculator. The calculator will evaluate and display the Inflation Cost.
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Inflation Cost Formula
The following formula is used to calculate the Inflation Cost.
IC = PC * IR/100
- Where IC is the Inflation Cost ($)
- PC is the previous year cost ($)
- IR is the inflation rate (%)
How to Calculate Inflation Cost?
The following example problems outline how to calculate Inflation Cost.
Example Problem #1:
- First, determine the previous year cost ($). The previous year cost ($) is given as 10,000.
- Next, determine the inflation rate (%). The inflation rate (%) is provided as 5.
- Finally, calculate the Inflation Cost using the equation above:
IC = PC * IR/100
The values given above are inserted into the equation below:
IC = 10,000 * 5/100 = 5,000.00 ($)
Example Problem #2:
The variables needed for this problem are provided below:
previous year cost ($) = 20,000
inflation rate (%) = 5
Entering these values and solving gives:
IC = PC * IR/100 = 10,000.00 ($)
