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) = ?
