Growth Rate Calculator
This calculator helps you determine the percentage growth rate between two values over a specific period.
Understanding Growth Rate
Growth rate is a fundamental concept used across various fields, including finance, economics, biology, and technology, to measure the increase or decrease in a quantity over time. It's typically expressed as a percentage and indicates how quickly a value is changing.
The formula for calculating simple growth rate (also known as average growth rate when applied over multiple periods) is:
Growth Rate = ((Ending Value - Starting Value) / Starting Value) * 100%
When considering a time period, the average annual growth rate (AAGR) can be calculated. However, if you're looking for a compound annual growth rate (CAGR), a more complex formula involving exponents is used. This calculator focuses on the simple growth rate, providing the overall percentage change between the two values.
When to Use This Calculator:
- Tracking the growth of sales or revenue over a specific period.
- Measuring population changes.
- Assessing the increase in investments (without compounding).
- Monitoring the expansion of a business.
For example, if a company's revenue grew from $100,000 to $150,000 over 5 years, the simple growth rate would be 50%. This calculator helps you quantify such changes easily. Remember that this simple growth rate doesn't account for compounding effects. For scenarios requiring compound growth, like investments over many years, a CAGR calculator would be more appropriate.