Compound Growth Formula:
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The Percent Increase Over Time calculator computes how a value grows when subject to compound growth over multiple periods. This is commonly used for financial calculations, population growth, and any scenario involving exponential growth.
The calculator uses the compound growth formula:
Where:
Explanation: The formula accounts for compounding, where each period's growth builds on the previous period's total, not just the original amount.
Details: Understanding compound growth is essential for financial planning, investment analysis, business forecasting, and understanding population dynamics or other natural growth processes.
Tips: Enter the starting value, the growth rate (as percentage), and the number of periods. All values must be positive numbers.
Q1: What's the difference between simple and compound growth?
A: Simple growth applies the percentage only to the original amount each period. Compound growth applies it to the current total, leading to exponential growth.
Q2: Can this calculator be used for depreciation?
A: Yes, by entering a negative growth rate, though the formula assumes the rate is constant over all periods.
Q3: What time periods can I use?
A: The calculator works with any consistent time period (years, months, days) as long as the rate matches the period length.
Q4: How accurate is this for real-world investments?
A: It provides a simplified model. Actual investments may have variable rates, fees, or other factors not accounted for.
Q5: Can I calculate backwards to find the original amount?
A: Yes, by rearranging the formula: \( Old\ Value = New\ Value / (1 + Rate/100)^{Periods} \).