The Percentage Growth Rate Calculator computes the gain, annual growth rate, and total percentage increase between an initial and final value over a specified period. This tool is suited for evaluating investment performance or other growth metrics, offering precise analysis of value appreciation.

Percentage Growth Rate Calculator

Percentage Growth Rate Calculator

Calculate the percentage growth rate over a specified period, showing both gain and growth rate.

? Enter the final value after the growth period.
? Enter the initial starting value.
? Enter the time period in years over which the growth occurred.

Using the Percentage Growth Rate Calculator

Input the final value post-growth, the initial value pre-growth, and the time period in years. Upon clicking “Calculate,” the tool outputs the gain, annual growth rate, and total percentage growth.

Growth Rate Calculation Formula

The growth rate is based on compound interest principles, reflecting the average annual increase in value.

Formula:

\( \text{Growth Rate} = \left( \frac{\text{Final Value}}{\text{Initial Value}} \right)^{\frac{1}{\text{Time}}} – 1 \)

This calculates the annualized growth rate, assuming consistent compounding over the period.

Example Calculation

Consider an investment rising from $5,000 to $7,500 over five years:

Gain: $7,500 – $5,000 = $2,500

Annual Growth Rate: \( \left( \frac{7500}{5000} \right)^{\frac{1}{5}} – 1 \approx 0.08447 \) or 8.45% per year

Total Growth: \( \frac{7500 – 5000}{5000} \times 100 = 50% \)


This reflects a 50% cumulative increase over five years, with an annualized growth rate of approximately 8.45%.

 

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