Enter the nominal price ($) and the price index into the Real Price Calculator. The calculator will evaluate and display the Real Price. 

Real Price Formula

The following formula is used to calculate the Real Price. 

RP = NP / PI * 100
  • Where RP is the Real Price ($)
  • NP is the nominal price ($) 
  • PI is the price index

To calculate the real price, divide the nominal price by the price index.

How to Calculate Real Price?

The following example problems outline how to calculate Real Price.

Example Problem #1:

  1. First, determine the nominal price ($).
    1. The nominal price ($) is given as: 100.
  2. Next, determine the price index.
    1. The price index is provided as: 30.
  3. Finally, calculate the Real Price using the equation above: 

RP = NP / PI * 100

The values given above are inserted into the equation below:

RP = 100 / 30 * 100 = 333.33 ($)

Example Problem #2: 

For this problem, the variables needed are provided below:

nominal price ($) = 400

price index = 20

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

RP = NP / PI * 100 = ?