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.


  1. First, determine the inflation rate (%). 
  2. Next, determine the expected efficiency savings (%). 
  3. Next, gather the formula from above = PC = CPI – X.
  4. Finally, calculate the Price Cap.
  5. 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