Compound Growth Calculator Formula

Understand the math behind the compound growth calculator. Each variable explained with a worked example.

Use the Compound Growth Calculator

Formulas Used

Final Val

final_val = initial * pow(1 + rate / 100, periods)

Total Gain

total_gain = initial * pow(1 + rate / 100, periods) - initial

Multiplier

multiplier = pow(1 + rate / 100, periods)

Doubling Time

doubling_time = rate > 0 ? 72 / rate : 0

Variables

VariableDescriptionDefault
initialInitial Value1000
rateGrowth Rate (%)(%)5
periodsNumber of Periods10

How It Works

Compound Growth

Formula

Final = Initial × (1 + r)^n

where r is the growth rate per period and n is the number of periods.

Rule of 72

To estimate doubling time: Periods ≈ 72 / rate(%)

At 6% growth, doubling takes approximately 72/6 = 12 periods.

Worked Example

1000 growing at 5% per year for 10 years.

initial = 1000rate = 5periods = 10
  1. 01Final = 1000 × (1.05)^10
  2. 02= 1000 × 1.6289
  3. 03= 1628.89
  4. 04Total gain = 628.89
  5. 05Doubling time ≈ 72/5 = 14.4 years

Ready to run the numbers?

Open Compound Growth Calculator