Enter the final cost ($) and the percentage change in cost (%) into the Initial Cost Calculator. The calculator will evaluate and display the Initial Cost.
Initial Cost Formula
The following formula is used to calculate the Initial Cost.
IC = FC / (1-PC/100)
- Where IC is the Initial Cost ($)
- FC is the final cost ($)
- PC is the percentage change in cost (%)
How to Calculate Initial Cost?
The following example problems outline how to calculate Initial Cost.
Example Problem #1:
- First, determine the final cost ($). The final cost ($) is given as 50.
- Next, determine the percentage change in cost (%). The percentage change in cost (%) is provided as 20.
- Finally, calculate the Initial Cost using the equation above:
IC = FC / (1-PC/100)
The values given above are inserted into the equation below:
IC = 50 / (1-20/100) = 62.5 ($)
Example Problem #2:
The variables needed for this problem are provided below:
final cost ($) = 60
percentage change in cost (%) = 10
Entering these values and solving gives:
IC = 60 / (1-10/100) = 66.66 ($)
