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:

1. First, determine the final cost (\$). The final cost (\$) is given as 50.
2. Next, determine the percentage change in cost (%). The percentage change in cost (%) is provided as 20.
3. 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 (\$)