Enter the inflation rate (%) and the expected efficiency savings (%) into the Calculator. The calculator will evaluate the Price Cap.

## Price Cap Formula

PC = CPI - X

Variables:

- PC is the Price Cap (%)
- CPI is the inflation rate (%)
- X is the expected efficiency savings (%)

To calculate the Price Cap, subtract the expected efficiency savings from the inflation rate.

## How to Calculate Price Cap?

The following steps outline how to calculate the Price Cap.

- First, determine the inflation rate (%).
- Next, determine the expected efficiency savings (%).
- Next, gather the formula from above = PC = CPI – X.
- Finally, calculate the Price Cap.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

inflation rate (%) = 16

expected efficiency savings (%) = 12