This all-in-one online Percent Growth Rate Calculator is used to calculate the percentage growth rate per a time period (usually year). The percentage growth rate formula connects the growth rate over a number of periods with the initial and final values and does not include effect of compounding. You can enter the values of any three known parameters in the input fields of this calculator and find the missing parameter.
Percentage Growth Rate Formula
Growth rates generally refer to the percentage change in a particular variable over a given period of time. Growth rates can be either positive or negative depending on whether the size of the variable increases or decreases over time.
Growth rate, expressed in percentage, is often used in finance and represents the rate at which a particular business or finance parameter (share, stock, investment or price) grows. The basic growth rate represents the growth rate percentage between one period to another:
The formula for the percent growth rate is as follows:
$$Growth \ Rate =\frac { { V }_{ f }- { V }_{ i } }{ { V }_{ i }\cdot T } \cdot 100 \% ,$$
where \({ V }_{ i }\) is the initial value, \({ V }_{ f }\) is the final value, and \(T\) is the number of periods (years).
Time periods used for calculation of growth rates are most often annually, quarterly, monthly, and weekly. In our Percent Growth Rate Calculator, the year is indicated as a time period, but if you are interested in another period, then the growth rate will need to be considered for that time period.
Growth rates can be useful in evaluating a company’s performance and predicting future results. Most often, growth rates are calculated for a company’s profits, sales, or cash flows, but investors also look at growth rates for other metrics.
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Check out our other financial calculators such as CAGR Calculator or Simple Interest Calculator.