Percent Growth Rate Calculator
Enter this to calculate the Compound Annual Growth Rate (CAGR) or average periodic rate.
Please enter valid numeric values for Initial and Final amounts. Initial value cannot be zero.
Total Percentage Growth
0.00%
Absolute Change (Difference)
0
Compound Growth Rate (CAGR)
0.00%
Result Interpretation
No change
How to Calculate Percent Growth Rate
Calculating the percentage growth rate is a fundamental skill in finance, business analytics, and even tracking personal goals like weight loss or savings. It measures how much a value has increased (or decreased) over a specific period relative to its starting point.
The Growth Rate Formula
The standard formula for calculating the percentage growth between two numbers is straightforward:
Growth Rate (%) = ((Final Value – Initial Value) / Initial Value) × 100
Where:
- Initial Value: The starting number (e.g., revenue last year, population in 2020).
- Final Value: The ending number (e.g., revenue this year, population in 2024).
Step-by-Step Calculation Example
Let's say a small business had $150,000 in sales in 2023 (Initial Value) and $185,000 in sales in 2024 (Final Value).
- Find the absolute change: $185,000 – $150,000 = $35,000.
- Divide by the initial value: $35,000 / $150,000 = 0.2333…
- Convert to percentage: 0.2333 × 100 = 23.33%.
This means the business experienced a 23.33% growth in sales.
Compound Annual Growth Rate (CAGR)
If you are measuring growth over multiple periods (like 5 years), a simple percentage change doesn't tell the whole story. You need the Compound Annual Growth Rate (CAGR) to smooth out the volatility and show the steady annual rate.
CAGR = ((Final Value / Initial Value)^(1 / n)) – 1
Where n is the number of time periods. Our calculator above automatically computes this if you enter the number of periods.
Interpreting Negative Growth
A negative result indicates a decrease or decay. For example, if a stock price drops from $50 to $40, the calculation is ((40 - 50) / 50) * 100 = -20%. This is often referred to as negative growth or contraction.