Home Back

How To Calculate Percentage Increase Over Time

Percentage Increase Formula:

\[ \text{New Value} = \text{Old Value} \times (1 + \frac{\text{Rate}}{100})^{\text{Periods}} \]

$
%
years

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is Percentage Increase Over Time?

Percentage increase over time calculates how a value grows when it's subject to compound growth at a constant rate over multiple periods. This is commonly used in finance, economics, and population growth calculations.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

\[ \text{New Value} = \text{Old Value} \times (1 + \frac{\text{Rate}}{100})^{\text{Periods}} \]

Where:

Explanation: The formula accounts for compound growth, where each period's growth builds on the previous period's total.

3. Importance of Growth Calculation

Details: Understanding percentage growth over time is crucial for financial planning, investment analysis, business projections, and understanding demographic changes.

4. Using the Calculator

Tips: Enter the starting value, growth rate percentage (without % sign), and number of periods. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between simple and compound growth?
A: Simple growth calculates only on the original amount, while compound growth calculates on the accumulated total each period.

Q2: Can I calculate monthly growth with annual rate?
A: Yes, but you need to convert the annual rate to a monthly rate and adjust periods accordingly.

Q3: How does this relate to the Rule of 72?
A: The Rule of 72 estimates doubling time (72/rate) for compound growth, which is derived from this formula.

Q4: What if my growth rate changes each period?
A: This calculator assumes a constant rate. For variable rates, you'd need to calculate each period separately.

Q5: Can this be used for depreciation calculations?
A: Yes, by using a negative growth rate, though most depreciation uses different models.

Percentage Increase Calculator© - All Rights Reserved 2025