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:

  1. First, determine the current price ($). 
    • The current price ($) is given as: 500.
  2. Next, determine the inflation rate (%). 
    • The inflation rate (%) is provided as: 10.
  3. 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) = ?