Growth Rate Calculator

Growth Rate Calculator to calculate the annual growth rate of an investment or the rate of any other growth, such as population growth in terms of percentage.

Growth rate formula

The growth rate formula is given below on how to calculate the growth rate of an investment.

GR = (F - P) / P / N, where
GR = growth rate
F = future value
P = present value
N = number of years

The growth rate is calculated by dividing the difference between the future value and present value by the present value, and then divide the number of years.

How to calculate growth rate?

Let's look at an example of how to calculate the growth rate of an investment. Let's say the initial deposit of an investment is $10,000, and it grows to $18,000 in 5 years.

To find out the growth rate of this investment, we plugin the above formula

GR = (F - P) / P / N
GR = (18000 - 10000) / 10000 / 5
GR = 8000 / 10000 / 5
GR = 0.8 / 5
GR = 0.16 or 16%
Therefore, the annual growth rate for this investment is 16%.