1. What is the Percent Increase Calculator?

The Percent Increase Calculator calculates how a value grows over time when subject to a consistent percentage increase each year. This is useful for financial planning, investment growth projections, and understanding compound growth.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Value — The starting amount
• Rate — The annual percentage increase rate
• Years — The number of years the increase is applied

Explanation: The formula accounts for compound growth, where each year's increase is applied to the previous year's total (including previous increases).

3. Importance of Compound Growth Calculation

Details: Understanding compound growth is crucial for financial planning, investment decisions, and projecting future values of assets or costs.

4. Using the Calculator

Tips: Enter the starting value, annual percentage increase rate, and number of years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between simple and compound growth?
A: Simple growth applies the percentage to the original amount each year. Compound growth applies it to the current amount, leading to exponential growth.

Q2: How accurate are these projections?
A: They're mathematically accurate for the given inputs, but real-world results may vary if rates fluctuate.

Q3: Can I use this for decreasing values?
A: Yes, by entering a negative rate (though the calculator currently only accepts positive rates).

Q4: What's the Rule of 72?
A: A quick way to estimate doubling time: 72 divided by the interest rate ≈ years to double.

Q5: Can I calculate monthly instead of yearly?
A: For monthly compounding, divide the annual rate by 12 and multiply years by 12.