1. What Is Price Impact?

Price Impact (PI) measures the percentage change between an old price and a new price. It is commonly used in economics, finance, and business to quantify how much a price has increased or decreased over a period.

2. How Does The Calculator Work?

The calculator uses the Price Impact formula:

Where:

• \( NP \) — New Price
• \( OP \) — Old Price

Explanation: The formula calculates the relative change as a percentage, showing how much the new price deviates from the old price.

3. Importance Of Price Impact Calculation

Details: Calculating price impact is essential for analyzing market trends, evaluating investment performance, adjusting pricing strategies, and understanding inflation or deflation effects.

4. Using The Calculator

Tips: Enter the old price and new price in the same currency or unit. Both values must be positive numbers, with the old price greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative price impact indicate?
A: A negative price impact indicates a price decrease from the old price to the new price.

Q2: What does a positive price impact indicate?
A: A positive price impact indicates a price increase from the old price to the new price.

Q3: Can price impact be more than 100%?
A: Yes, if the new price is more than double the old price, the price impact will exceed 100%.

Q4: Is price impact the same as percentage change?
A: Yes, price impact is essentially the percentage change in price between two values.

Q5: How is price impact used in stock market analysis?
A: In stock markets, price impact helps measure how much a stock's price has changed due to market movements, news, or trading volume.