1. What is the Increase Formula?

The increase formula calculates the new value after applying a percentage increase to an original value. It is commonly used in finance, economics, and various growth calculations.

2. How Does the Calculator Work?

The calculator uses the increase formula:

Where:

• \( Old \) — Original value before increase
• \( Rate \) — Rate of increase (expressed as decimal)
• \( New \) — Resulting value after increase

Explanation: The formula multiplies the original value by one plus the rate to calculate the increased value.

3. Importance of Increase Calculation

Details: Accurate increase calculation is crucial for financial planning, investment analysis, price adjustments, and growth projections in various fields.

4. Using the Calculator

Tips: Enter the original value and the rate as a decimal (e.g., 0.05 for 5%). Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert percentage to decimal?
A: Divide the percentage by 100. For example, 15% becomes 0.15.

Q2: Can this formula be used for decrease calculations?
A: Yes, by using a negative rate value. For example, a 10% decrease would use a rate of -0.10.

Q3: What's the difference between this and compound growth?
A: This calculates a single increase. Compound growth applies multiple increases over time.

Q4: Are there limitations to this formula?
A: The formula assumes a linear relationship and may not account for more complex growth patterns or external factors.

Q5: Can I use this for currency calculations?
A: Yes, the formula works for any numerical values, including currency amounts.