The Compound Growth Calculator is used to solve compound growth problems. It will calculate any one of the values from the other three in the compound growth formula.

FAQ

Compound Growth rate can be defined as the average growth rate of investments over the years. One way to look at compound growth is to take all peaks and valleys when considering investment prospects. Average year-end growth rates cannot provide us with an accurate measure of compound growth over several years. So we let compound growth equal any growth rate that gives us the same initial and final values over the same period.

The following is the compound growth formula:

y = a(1 + r)^{x}

where: y = value of the variable after x periods (future compounded value) a = initial value of the variable r = compound growth rate x = number of periods

You can fill in any three for Initial value, number of periods, compound growth rate and future compounded value, then click calculate button. This tool will calculate the fourth value. You can also download the result in PDF file type.