Enter the current price ($) and the inflation rate (%) into the Reverse Inflation Calculator. The calculator will evaluate and display the initial price before inflation.

## Reverse Inflation Formula

The following formula is used to calculate the Reverse Inflation.

**IP = CP / (1+R/100)**

- Where IP is the initial price before inflation ($)
- CP is the current price ($)
- R is the inflation rate (%)

## How to Calculate Reverse Inflation?

The following example problems outline how to calculate Reverse Inflation.

Example Problem #1:

- First, determine the current price ($).
- The current price ($) is given as: 500.

- Next, determine the inflation rate (%).
- The inflation rate (%) is provided as: 10.

- Finally, calculate the Reverse Inflation using the equation above:

IP = CP / (1+R/100)

The values given above are inserted into the equation below and the solution is calculated:

IP = 500 / (1+10/100) = 454.54 ($)

Example Problem #2:** **

For this problem, the variables required are provided below:

current price ($) = 600

inflation rate (%) = 20

Test your knowledge using the equation and check your answer with the calculator above.

IP = CP / (1+R/100)** = ?**