Growth Rate Calculator

Formula

The formula to calculate growth rate is:

\[ r = \left(\frac{x(t)}{x0}\right)^{\frac{1}{t}} - 1 \]

Where:

\(r\) is the growth rate
\(x(t)\) is the final value
\(x0\) is the initial value
\(t\) is the time in years

Growth Rate

In this article, we’re going to explain the growth rate and how to calculate it. We will also answer some frequently asked questions related to growth rate.

To calculate growth rate, divide the final value by the initial value, raise the result to the power of 1 over the time period, then subtract 1. This metric offers valuable insights into the rate of change and expansion of various phenomena, making it a vital tool in numerous fields.

Growth Rate Example

Let's assume the following:

Initial Value (x0): 100
Final Value (x(t)): 200
Time (t): 5 years

Step 1: Calculate the growth rate:

\[ r = \left(\frac{200}{100}\right)^{\frac{1}{5}} - 1 \approx 0.1487 \, \text{or} \, 14.87\% \]

Therefore, the growth rate is approximately 14.87% per year.