Market Index Calculator
Easy Access to Market Indices Calculation
Our Free Market Index Calculator provides you with an effortless way to calculate various market indices (CPI, PPI, and MPI) based on your specific market situation.
The Competitor Price Index (CPI) is a crucial key performance indicator often used to compare your product prices with those of your competitors. However, there are multiple ways different organisations calculate their indices. Here are a few for example:
- competitor price index (CPI),
- product price index (PPI),
- market price index (MPI) and
- full market price index (full MPI)
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Understanding the Indices
Competitor Price Index (CPI)
The Competitor Price Index (CPI) is a crucial key performance indicator often used to compare your product prices with those of your competitors. It is calculated using products that you and your competitor have in common.
Your basket sum, which is the total price of all common products, is set to an index of 100. Competitors’ basket sums are then compared to yours. If the index value is less than 100, the competitor’s basket is cheaper than yours. If the index value is greater than 100, the competitor’s basket is more expensive. An index value of 100 indicates that your basket price levels are similar to your competitor’s.
1 unit in index represent 1% difference. For example, if a competitor index is 98, their basket is 2% cheaper.
Product Price Index (PPI)
Instead of summing all product prices in your basket together, the Product Price Index (PPI) is calculated by dividing your competitors’ product price by your price for each product. Then the average of these indices is calculated for your competitor.
Market Price Index (MPI)
The Market Price Index (MPI) compares your prices to the market average. The average sum of all product prices in competitors’ baskets is considered the base level of 100, called the market basket. You compare your basket to this market basket by dividing the sum of product prices in your basket by the average sum of product prices in the market index. If the index value is less than 100, your basket is cheaper than the market basket. If the index value is greater than 100, your basket is more expensive. An index value of 100 indicates that your basket is priced similarly to the market average.
Our tool simplifies these calculations for you, providing you with a clear picture of your market position.