Percentage Increase Formula:
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Percentage increase measures how much a value has grown over time, expressed as a percentage of the original value. It's commonly used in finance, economics, and statistics to track growth rates.
The calculator uses the compound percentage increase formula:
Where:
Explanation: The formula accounts for compounding growth, where each year's increase is calculated on the previous year's total value.
Details: This calculation is essential for financial planning, investment growth projections, salary increases, inflation adjustments, and business revenue forecasting.
Tips: Enter the original value, annual percentage increase rate, and number of years. All values must be positive numbers.
Q1: What's the difference between simple and compound percentage increase?
A: Simple increase calculates growth only on the original amount each year, while compound increase calculates growth on the accumulated total each year.
Q2: How do I calculate monthly instead of yearly increases?
A: Divide the annual rate by 12 for monthly rate, and multiply years by 12 for total months.
Q3: Can this calculator handle decreasing values?
A: Yes, enter a negative percentage for a decrease (e.g., -5% for a 5% annual decrease).
Q4: What's the Rule of 72 for percentage growth?
A: Divide 72 by the growth rate to estimate how many years it takes to double your investment (e.g., at 6%, it takes ~12 years to double).
Q5: How accurate are these projections?
A: They're mathematically accurate for the given inputs, but real-world results may vary due to changing rates and other factors.