Forum Discussion
Reverse Engineer Annual Cost Escalation Charged to Me
I am using a formula to calculate escalation for a schedule delay. I think this is correct. Original Price $563,750 Original Start Date 4/16/2018 New Start Date 7/7/2022 ...
If you write out the equation, a little bit of mathematics yields
B6*(1+N6)^(($J$6-$G$6)/365.25)=D6 -->
(1+N6)^(($J$6-$G$6)/365.25)=D6/B6 -->
1+N6=(D6/B6)^(365.25/($J$6-$G$6)) -->
N6=(D6/B6)^(365.25/($J$6-$G$6))-1
So the formula to calculate the percentage is
=(D6/B6)^(365.25/($J$6-$G$6))-1
Perfect, thank you.