Percentage Increase Formula:
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This calculator shows how a value grows over time with a fixed annual percentage increase. It's commonly used for financial projections, investment growth, inflation calculations, and population growth estimates.
The calculator uses the compound growth formula:
Where:
Explanation: The formula accounts for compound growth where each year's increase builds on the previous year's total value.
Details: This calculation is essential for financial planning, investment analysis, retirement planning, business revenue projections, and understanding long-term price changes due to inflation.
Tips: Enter the starting value, annual percentage increase rate, and number of years. The calculator will show the final value and a year-by-year breakdown of growth.
Q1: What's the difference between simple and compound growth?
A: Simple growth calculates increase only on the original amount each year, while compound growth calculates on the accumulated total.
Q2: How does changing the rate affect the result?
A: Small rate changes can lead to large differences over long periods due to compounding effects.
Q3: Can this be used for monthly calculations?
A: Yes, but you'd need to adjust the rate to monthly (divide annual rate by 12) and use months instead of years.
Q4: What if the rate changes each year?
A: This calculator assumes a constant rate. For variable rates, you'd need to calculate each period separately.
Q5: How accurate are long-term projections?
A: While mathematically correct, long-term projections become less reliable as they can't account for unforeseen changes in rates.