Calculate catch-up growth rate, future value, present value, or periods from any three inputs using the FV = PV × (1 + CG/100)^n growth formula.
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Catch Up Growth Formula
The catch up growth calculation uses compound growth. You enter any three values, and the missing value is calculated from the same future value relationship.
- FV = future value, or the target ending amount
- PV = present value, or the starting amount
- CG = catch-up growth rate per period, expressed as a percent
- n = number of compounding periods
The future value function calculates where a starting value will end after growing at the catch-up rate for a set number of periods. The catch-up growth rate function calculates the required periodic growth rate needed to move from the present value to the future value. The number of periods function calculates how long it will take to reach the future value at a given growth rate. The present value function calculates the starting value needed to reach a future value at a given growth rate and number of periods.
Growth Rate and Period Reference
Use the tables below to check whether a result is in a reasonable range. The growth rate period must match the period count. For example, if the growth rate is annual, then the number of periods should be years.
| Growth Rate per Period | Multiplier After 5 Periods | Multiplier After 10 Periods | Multiplier After 20 Periods |
|---|---|---|---|
| 2% | 1.1041 | 1.2190 | 1.4859 |
| 5% | 1.2763 | 1.6289 | 2.6533 |
| 8% | 1.4693 | 2.1589 | 4.6610 |
| 10% | 1.6105 | 2.5937 | 6.7275 |
| Starting Value | Target Value | Periods | Required Catch-up Growth Rate |
|---|---|---|---|
| $1,000 | $1,500 | 5 | 8.4472% |
| $2,500 | $5,000 | 10 | 7.1773% |
| $10,000 | $25,000 | 15 | 6.3037% |
Example Problems
Example 1: Calculate future value
You start with $5,000, the catch-up growth rate is 6% per period, and the value grows for 8 periods.
The future value is $7,969.24.
Example 2: Calculate catch-up growth rate
You need a present value of $12,000 to grow to $20,000 over 6 periods.
The required catch-up growth rate is 8.8758% per period.
FAQ
What does catch-up growth rate mean?
Catch-up growth rate is the periodic compound growth rate needed for a starting value to reach a target value within a set number of periods. In this calculator, it is treated like a compound growth rate for money or another numeric value.
Do periods have to be years?
No. Periods can be years, months, quarters, or any consistent interval. The important rule is that the growth rate and periods must use the same interval. If the rate is monthly, the period count should be in months. If the rate is annual, the period count should be in years.
Why does the calculator require exactly one blank field?
The formula needs three known values to solve for the fourth. If more than one field is blank, there is not enough information to produce a single answer. If no fields are blank, there is nothing for the calculator to solve.
