Enter the present value, future value, and the number of years an asset of investment has been growing into the calculator below to determine the growth rate in % per year.

## Growth Rate Percent Formula

The following formula is used by the calculator above to determine the growth rate in percent of a value over time.

x(t) = x0 × (1 + r) t

Where r is the growth rate in percent. This equation can further be simplified to the following:

r = (x(t) – x0)^ 1/t – 1

• Were X(t) is the final value
• X0 is the initial value
• t is time in years

## Growth Rate Definition

A growth rate is the rate of increase of a value. In other words, what percentage of a value increases per time period.

## How to calculate a growth rate?

How to calculate a growth rate percent

1. First, determine the initial final values

This will be the values at time t=0.

2. Next, measure the time elapsed.

After the time has passed, measure the final value.

3. Finally, calculate the growth rate percent.

Enter the values from steps 1 and 2 into the formula to calculate the growth rate percent.

## FAQ

What is a growth rate percent?

A growth rate percent is the percentage increase of an exponential function. That is the rate increase of a value over each unit of time.

Can growth rate percent be negative?

Absolutely, a negative growth rate equation will yield values that approach 0 but never reach it.