1. What is the Percentage Increase Calculator?

This calculator determines the future value of an amount after applying a consistent percentage increase over a specified number of years. It's useful for financial planning, investment projections, and understanding compound growth.

2. How Does the Calculator Work?

The calculator uses the compound growth formula:

Where:

• Old Value — Initial amount or value
• Rate — Annual percentage increase rate
• Years — Number of years for growth

Explanation: The formula accounts for compound growth, where each year's increase is applied to the previous year's total, not just the original amount.

3. Importance of Percentage Growth Calculation

Details: Understanding compound growth helps in financial planning, investment decisions, and projecting future costs or revenues. It demonstrates how small annual increases can lead to significant growth over time.

4. Using the Calculator

Tips: Enter the original amount, annual growth rate (as a percentage), and number of years. All values must be positive numbers (years must be at least 1).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between simple and compound growth?
A: Simple growth applies the percentage only to the original amount each year. Compound growth applies it to the accumulated total, resulting in faster growth.

Q2: Can I use this for decreasing values?
A: Yes, by entering a negative rate, though results may not be meaningful for large decreases over many years.

Q3: How accurate are these projections?
A: They're mathematically accurate for the inputs, but real-world results may vary due to changing rates or other factors.

Q4: What if I want monthly compounding?
A: Adjust the rate to monthly (divide annual rate by 12) and years to months (multiply by 12).

Q5: Can this calculate investment returns?
A: Yes, it can project investment growth assuming a fixed annual return rate.