Growth Rate Calculator

The growth rate calculator helps you to find the growth rate percentage by comparing the present values and past values of the investments.

You can estimate the percentage increase of one value to another in terms of percentage by the percentage percent growth calculator.

What is Growth Rate Calculation?

The growth rate is used to express the growth or decline of investment in terms of percentage. 

A positive growth rate represents the positive percentage change in a period of time. On the other hand, the negative growth rate represents the decline in investment over a period of time. For specifying the percentage increase or decrease in the investment, use the percentage growth calculator to specify the condition of investment.

The Formula For Growth Rate:

The growth rate is calculated by subtracting the present values from the past and dividing by the past value.

\(text{Select Option}=\frac{(V_{present} – V_{past})}{ V_{past}}\)

Being an entrepreneur, you can identify the condition of the investments and identify the relative increase or decrease in investments with the help of a percent growth calculator.

Example:

Consider the present value of the investment is $2400 and the past investments were $1200. Then what is the rate of growth of the investment?

Solution:

\(text{Growth Rate} =\dfrac{2400-1200}{1200}\)

\(text{Growth Rate} =\dfrac{1200}{1200}\)

\(text{Growth Rate} =1\)

\(%\text{Growth Rate} =1\times {100}\)

Growth Rate =1

Growth Rate =100% 

The Annual Growth Rate:

For the annual growth rate, specify the number of years of investment and the percentage of growth. 

\(text{Select Option}_{annual} = (\frac{V_{present}}{V_{past}})^{\frac{1}{t}}-1\)

Example:

Consider the present value of the investment is $2000 and the investment has been done 5 years ago with an initial investment of $200. Then what is year over year growth of investment?

Solution:

\(text{Annual Growth Rate} =(\dfrac{2000}{200})^{\frac{1}{5}}-1\)

\(text{Annual Growth Rate} =(10)^{\frac{1}{5}}-1\)

\(text{Annual Growth Rate} =(1.5849)-1\)

\(text{Annual Growth Rate} =0.5849\)

\(%\text{Annual Growth Rate} =0.5849\times {100}\)

\(%\text{Annual Growth Rate} =0.5849\)

The growth rate formula for annual growth does include the growth rate over a period of time. If you are calculating the growth rate over a period of a year or so, then for precise estimation use the year over year growth calculator.

Working of Growth Rate Calculator:

Let’s see how the sales growth calculator can be operated in simple steps.

Input:

• Enter the present value and past value of an investment 
• Hit the calculate button

Output:

• Percentage increase

References:

From the source of Investopedia.com: Growth Rate Calculation, Year Over Year Increase 

From the source of Paddle.com:Percent Growth, Sales Growth