Compound Growth Calculator
Calculate the future value of an investment or quantity growing at a fixed annual compound rate over a given number of years.
How to use this tool
- Enter initial value (present value), annual growth rate and number of years in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your future value and the full breakdown beneath it.
Formula
FV = PV × (1 + r)n
Where FV = future value, PV = present value, r = annual growth rate (decimal), n = number of years.
How it works
Compound growth applies the growth rate to an ever-increasing base: each year's gain is added to the principal before the next year's rate is applied, producing exponential rather than linear growth. The formula FV = PV × (1 + r)n is the standard discrete compound growth equation used in finance and economics.
This calculator assumes a constant annual growth rate and annual compounding. It does not account for taxes, fees, or varying rates over time.
Worked example
$1,000 growing at 5% for 10 years
- Present value PV = $1,000, annual rate r = 5% = 0.05, years n = 10.
- Apply formula: FV = 1000 × (1 + 0.05)^10 = 1000 × 1.05^10.
- 1.05^10 = 1.628894627..., so FV = 1000 × 1.628895 ≈ $1,628.89.
- Total growth = $1,628.89 − $1,000 = $628.89 (62.89%).
Future value = $1,628.89 after 10 years.
Key terms
- Present Value (PV)
- The starting amount or current worth of an investment before growth is applied.
- Future Value (FV)
- The value of the investment after compounding over the specified number of periods.
- Compound Annual Growth Rate (CAGR)
- The constant year-over-year rate that would take a value from its beginning to its ending level over a given time.
- Compounding
- The process where interest or growth earned in one period is added to the principal, so future growth is calculated on a larger base.