Growth Rate Function Calculator

Growth Rate Function Calculator

This tool calculates the constant growth rate required for an initial value to reach a final value over a specific period, assuming exponential growth (or decay). This is commonly used to determine Compound Annual Growth Rate (CAGR) in business, population growth in biology, or viral spread rates.

The unit of time determines the unit of the growth rate.

Understanding the Growth Rate Function

The exponential growth rate function measures how fast a quantity increases (or decreases) over time when the growth is proportional to the current value. Unlike linear growth, where a fixed amount is added each period, exponential growth compounds.

The Formula

The calculator determines the rate (r) using the rearranged exponential growth formula:

r = ((Vₜ / V₀)^(1/t)) – 1

  • V₀ (Initial Value): The starting amount at the beginning of the period.
  • Vₜ (Final Value): The ending amount after the time period has elapsed.
  • t (Time Period): The duration between the initial and final measurements.
  • r (Rate): The resulting growth rate per time unit (expressed as a decimal, converted to percentage in results).

Example Calculation

Suppose a bacterial culture starts with a population of 500. After 8 hours, the population has grown to 2,500. What is the hourly growth rate?

  1. Initial Value (V₀) = 500
  2. Final Value (Vₜ) = 2,500
  3. Time Period (t) = 8
  4. Calculation: r = ((2500 / 500)^(1/8)) – 1
  5. r = (5^(0.125)) – 1 = 1.2228 – 1 = 0.2228
  6. Converted to percentage: 22.28% growth per hour.

If the Final Value is less than the Initial Value, the result will be negative, indicating an exponential decay rate.

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