Price Increase Impact Calculator
Shows how much more a price rise adds to your monthly and yearly spending.
Recent
Formula
How the calculation works
The extra per month is the current expense multiplied by the rate of increase, and the new monthly cost adds that extra back on.
Multiplying the monthly extra by twelve shows the yearly damage, which is the figure a household budget actually feels.
A small percentage can look trivial on one line but the twelve-month total is what turns it into a real problem.
Common mistakes
- Applying the increase to one item and reading it as the whole household rise overstates the impact; run it per item or on a total.
- Forgetting that a price rise also compounds with any further rise next year, which is why inflation is tracked over time.
When to use it
- Use it when a recurring cost rises and you want to see the monthly and yearly hit before it lands.
- It is not a one-off price comparison; for a single purchase the plain difference in price is enough.
Worked example
20000 a month rising 10% adds 2000 a month, 24000 a year.
Common questions
Does this cover only one item?
It applies the increase to one monthly figure, so run it per item or use a total monthly spend.
Why show the yearly figure?
A small monthly rise looks harmless but the twelve month total is what actually hits the household budget.
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