Reverse Inflation Calculator





Formula

The formula to calculate the initial price before inflation is:

\[ \text{IP} = \frac{\text{CP}}{1 + \frac{R}{100}} \]

Where:

What is Reverse Inflation?

Reverse inflation is the process of determining the initial price of an item before inflation. It is calculated by dividing the current price by the sum of 1 and the inflation rate divided by 100. This gives the initial price before the inflation rate was applied.

Example Calculation

Example:

Calculation:

\[ \text{IP} = \frac{120}{1 + \frac{20}{100}} = 100 \text{ dollars} \]