How to Calculate Cost Increase by a Percent

Knowing the cost of your goods helps you set your prices.
••• Michael Blann/Lifesize/Getty Images

Due to inflation and other factors, prices of goods rise. In a business, you need to know the size of the cost increases of the goods that you use so that you can adjust your prices accordingly. The price increase can be measured as a percentage of the previous price because a $0.50 increase is much more significant when the original price is $1 than when the original price equals $50. To find the cost increase expressed as a percentage, you need to know the original cost and the final cost.

    Subtract the original cost from the final cost. For example, if the cost of a part goes up from $5.60 to $6.10, subtract $5.60 from $6.10 to get $0.50.

    Divide the cost increase by the original cost. In this example, divide $0.50 by $5.60 to get 0.0892857142857143.

    Multiply the Step 2 result by 100 to find the cost increase expressed as a percent. Completing the example, multiply 0.0892857142857143 by 100 to find that the cost increase equals about 8.93 percent.

Related Articles

How to Calculate PA2 Value
How to Calculate Daily Compounding Interest
How to Calculate 20% Off
How to Calculate Relative Increases
How to Figure the Percentage of Change
How to Calculate Shrinkage Percentage
How to Calculate Reverse Percentage
How to Increase a Number by a Percentage
How to Calculate Percentage of Increase
How to Calculate Percentage Reduction
How do I Calculate 0.1%?
How to Calculate 2/3 of a Number
How to Add Percentage to a Price
How to Calculate Average Increase
How to Calculate Asphalt Prices
How to Find the Volume of a Sphere in Terms of Pi
How to Calculate Percent of Return
How to Calculate the Slope of Regression Line
How to: Improper Fractions Into Proper Fractions
How to Calculate Multipliers With MPC