Inflation Cost Calculator

Formula

To calculate the Inflation Cost ($IC$):

\[ IC = PC \times \frac{IR}{100} \]

Where:

$IC$ is the Inflation Cost ($)
$PC$ is the Previous Year's Cost ($)
$IR$ is the Inflation Rate (%)

What is Inflation Cost?

Inflation cost refers to the increase in the cost of goods and services over time due to inflation. It is calculated by multiplying the previous year's cost by the inflation rate. This measure helps in understanding how much more expensive goods and services have become over a period of time.

Example Calculation 1

Let's assume the following values:

Previous Year's Cost ($PC$) = $1,000
Inflation Rate ($IR$) = 5%

Using the formula:

\[ IC = 1000 \times \frac{5}{100} = 50 \text{ dollars} \]

The Inflation Cost is $50.

Example Calculation 2

Let's assume the following values:

Previous Year's Cost ($PC$) = $2,000
Inflation Rate ($IR$) = 3%

Using the formula:

\[ IC = 2000 \times \frac{3}{100} = 60 \text{ dollars} \]

The Inflation Cost is $60.