Pricing strategy
Price increase, year by year.
Enter a price and an annual increase, or a target new price, and choose how many years. See the price each year and the total increase when increases compound.
Price after n years = price x (1 + increase)^n. A 5% yearly increase on $100 gives $105.00 after one year and $115.76 after three, a 15.76% total rise, not 15%.
Your numbers
Result
Worked example
A $100 price rises 5% a year for three years. Year 1 is $105.00, year 2 is $110.25 and year 3 is $115.76. The total rise is $15.76, or 15.76%. Adding 5% three times would wrongly give $115.00. If you type a new price of $92 for an $80 item instead, the increase is 15.00%.
How it works
New price = old price x (1 + percentage / 100). When you enter a new price instead, the percentage is (new price / old price - 1) x 100, and that percentage is then applied each year.
For several years the increases compound, so each year's rise is a percentage of the already raised price. The page shows the simple-sum price next to the compounded one so you can see the gap.
This is the plain price arithmetic. To see how a rise could change the number of customers, use the price increase impact calculator, and for subscriptions see the subscription price increase scenario.
Sources and basis (opened 2026-10-08): arithmetic on your inputs only.
Educational maths on the numbers you enter. Everything runs in your browser. Nothing you type is sent or stored.
FAQ
How do I calculate a price increase percentage?
Divide the new price by the old price, subtract 1 and multiply by 100. Going from $80 to $92 is 92 / 80 - 1 = 15.00%.
Why is three years of 5% more than 15%?
Each year's 5% applies to the price already raised, so the total after three years is 1.05 x 1.05 x 1.05 = 1.1576, a 15.76% rise.
Does this show how many customers I will lose?
No. It only does the price arithmetic. The price increase impact calculator estimates volume, revenue and profit from an elasticity you choose.