Cost Increase Per Year Calculator

Calculate Cost Increase Per Year



Formula

The formula to calculate the Cost Increase Per Year is:

\[ \text{CIPY} = \frac{\text{CI}}{\text{Y}} \]

Where:

What is Cost Increase Per Year?

Cost Increase Per Year (CIPY) is the average annual increase in cost over a specified period. It is calculated by dividing the total cost increase by the number of years. This metric helps in understanding the rate at which costs are rising annually.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{CIPY} = \frac{5000}{5} = 1000 \, \text{\$/year} \]

The Cost Increase Per Year is $1000/year.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{CIPY} = \frac{12000}{3} = 4000 \, \text{\$/year} \]

The Cost Increase Per Year is $4000/year.