Real Price Calculator

Calculate Real Price



Formula

The formula to calculate the Real Price is:

\[ \text{RP} = \frac{\text{NP}}{\text{PI}} \times 100 \]

Where:

What is Real Price?

Real Price is the adjusted value of a nominal price, taking into account changes in the price index. It reflects the true purchasing power of money by accounting for inflation or deflation.

Example Calculation

Let's consider an example:

Using the formula to calculate the Real Price:

\[ \text{RP} = \frac{200}{120} \times 100 \approx 166.67 \text{ dollars} \]

This means that the real price for this scenario is approximately $166.67.