How to Use This Calculator
- Enter the growth rate as a percentage (e.g., 5 for 5%). This represents the annual growth rate.
- Select how often the growth is compounded per year (annually, semi-annually, quarterly, etc.).
- Click the "Calculate" button to compute the doubling time.
- The result will show how many years it takes for a quantity to double at the given growth rate.
Understanding the Formula
The calculator uses the formula:
T = log(2) / (r × n)
Where:
- T = Doubling Time (years)
- r = Growth Rate (as a decimal)
- n = Compounding Frequency per Year
Practical Applications
This calculator can be used in various fields:
- Finance: To determine how long it takes for an investment to double at a specific interest rate.
- Business: To forecast when sales or customer base might double.
- Science: To calculate population growth rates or radioactive decay.
- Economics: To analyze economic indicators like GDP growth.
Example
If you have an investment with an annual growth rate of 7% compounded monthly, the doubling time would be:
T = log(2) / (0.07 × 12) ≈ 10.24 years
This means it would take approximately 10.24 years for your investment to double in value.