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Annualized Price Increase
Financial - Enterprise
Saturday, 09 December 2006 10:33

With this calculator you can compare price increases with inflation. When you don't adapt your prices with inflation every year it is often difficult to see much the annual increase is. Many (small) organizations do not increase their prices every year with a small amount. Instead they often increase their prices with a bigger amount every couple of years. Clients are more likely to complain then, they only see the current price increase and they don't know for how many years the old price was valid. You could give them the start date for the previous price and this calculator. They can than judge for themselves that the annualized price increase is smaller than they thought.

You can also use this calculator for checking the price increases of competing products and products from your suppliers. You might be able to negotiate down the price of some of the products you buy, even as a consumer.

Enter first the date on which the previous price was first valid and below that the value of the previous price. Enter then the start date of the new price and then the value of the new price. After clicking "Compute" the annualized price increase percentage will appear in addition to the total price increase.