Amounts in your currency, rates per year, compounded yearly.
Enter both values and the years held.
Blank uses the value above
Enter a value, a rate and the years.
Fill in the sections above to project.
Two calculations, one about the past and one about the future. The first tells you what an investment has actually returned per year. The second projects what a sum grows to from here at a chosen rate.
Growth so far takes the value you put in, the value it is worth today, and the years in between, and reports the total gain and the annual growth rate. The annual rate is the compound annual growth rate: the single yearly rate that, compounded every year, would have carried the initial value to the current value over that time.
The projection takes a starting value, a rate per year and a number of years, compounds yearly, and lists the value at the end of every year along the way. If you leave the starting value blank it uses today's value from the first section, and one tap copies the rate you actually earned into the projection.
Divide the current value by the initial value, take the root of that ratio to the power of one over the years held, and subtract one. That is the compound annual growth rate, or CAGR. An investment that went from 100,000 to 150,000 over five years grew at about 8.4 percent a year, even though the total gain was 50 percent.
Each year's growth is added to the balance, and the next year's growth is calculated on the larger balance. Over ten years at 8 percent, 100,000 becomes about 216,000, not 180,000, because the growth itself grows. This calculator compounds once a year throughout, so a rate it measures and a rate it projects mean the same thing.
Divide 72 by the yearly rate for a close estimate: at 6 percent about 12 years, at 9 percent about 8 years. Enter the rate and the years in the projection to see the exact figure and the balance at every year in between.
Total growth is the whole gain over the whole period as one percentage. Growth per year spreads that gain across the years as a compounding rate. A 50 percent total gain over five years is not 10 percent a year; it is about 8.4 percent, because each year builds on the last.