Compound Growth
Project a value forward at a compound annual growth rate.
Introduction
Who this is for: Investors projecting values, rents or portfolio growth over time.
Why it matters: Compounding is not intuitive. 4% a year doubles a value in roughly 18 years, and small differences in rate produce very large differences over a holding period.
Typical scenario: An investor modelling a property value over a 10-year hold at assumed capital growth.
- Applying simple rather than compound growth over long periods.
- Projecting recent short-term growth rates far into the future.
- Forgetting that real (inflation-adjusted) growth is what matters for purchasing power.
Inputs
Projection
years
Analysis
£450,000 growing at 4% for 10 years reaches £666,110. Adjusted for 2.5% inflation, that is £520,364 in today's money — a real growth rate of 1.46%.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Sensitivity
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Live Results
Projected Value
£666,110
Total Growth
£216,110
Total Growth
48.02%
Real Value (today’s money)
£520,364