Percent Increase Formula:
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The percent increase over time formula calculates how a value grows when subject to compound growth at a constant rate over multiple periods. This concept is fundamental in finance, economics, and population growth studies.
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.
Details: This calculation is used for investment growth projections, inflation adjustments, population growth modeling, and business revenue forecasting.
Tips: Enter the starting value, annual growth rate (as percentage), and number of periods. The calculator will show the final value and a growth chart.
Q1: What's the difference between simple and compound growth?
A: Simple growth applies the percentage to the original amount each period, while compound growth applies it to the current amount (including previous growth).
Q2: How does this relate to the Rule of 72?
A: The Rule of 72 estimates doubling time (72/growth rate) and is derived from this formula.
Q3: Can I calculate monthly growth?
A: Yes, just enter monthly rate and number of months. Convert annual rate to monthly by dividing by 12.
Q4: What about negative growth rates?
A: The formula works for negative rates (decay) too - just enter a negative percentage.
Q5: How accurate are long-term projections?
A: Less reliable over long periods as growth rates rarely stay constant. Useful for short/medium term estimates.