The formula
Total growth = (end − start) ÷ start. Compound growth per period = (end ÷ start)^(1 ÷ periods) − 1.
How to use it
- Use periods of equal length, such as months or quarters.
- Compound growth smooths uneven periods into one steady rate.
- For a negative result, the value fell: the same formula applies.
Frequently asked questions
What is the difference between growth rate and compound growth rate?
Growth rate compares two points. Compound growth rate is the steady rate per period that would take you from the start to the end over several periods.