How to Calculate Compound Percentage?

Compound percentage calculates the increase or decrease of a value by a certain percentage rate multiple times. The formula is:

Final Value = Initial Value × (1 + Percentage ÷ 100)^Period

Example:

  • $ 1000, after a 10 % increase per year for 3 years: $ 1000 × (1 + 10/100)³ = $ 1331
  • 100 people, after a 5 % increase per month for 6 months: 100 × (1 + 5/100)⁶ ≈ 134 people

Compound Percentage Calculation

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