1. What is the Percentage Increase Formula?

The percentage increase formula calculates compound growth over multiple periods. It's commonly used for financial projections, population growth, and any scenario involving exponential growth.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Value — Starting amount or quantity
• Rate — Percentage growth rate per period
• Periods — Number of time periods

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

3. Importance of Compound Growth Calculation

Details: Understanding compound growth is essential for financial planning, investment analysis, and predicting long-term trends in business and economics.

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 applies the percentage to the original amount each time, while compound growth applies it to the accumulated total.

Q2: Can this be used for monthly calculations?
A: Yes, just make sure the rate and periods use consistent time units (e.g., monthly rate with months as periods).

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

Q4: What if the rate is negative?
A: The formula works for negative rates (declining values) though the calculator currently restricts to positive rates.

Q5: Can I calculate backwards to find the original value?
A: Yes, you can rearrange the formula: Old Value = New Value / (1 + Rate/100)^Periods.