Your Equation

Library / Foundations: Maths / FMA-02

Foundations: Maths

Repeated percentage change

Value after the same percentage rate is applied for n periods.

Ref
FMA-02
Rev
v1
Field
Foundations: Maths
Result
B

A is the start, r the percentage rate per period (negative for a decrease) and n the number of periods. For a reverse percentage divide the final value by the multiplier.

Each period multiplies the value by the same factor, so after n periods the starting value has been multiplied by that factor n times.

Calculator

Solve for
1010,000
%
0.520
130
  • Total change62.89 %
  • Multiplier per period1.05

What drives the result

Each variable is moved across its typical range while the others stay at the values above. The longest bar is the key driver.

Final value () current value 1,629
AStarting valueKey driver
16.316,300
rRate per period
1,0506,190
nNumber of periods
1,0504,320
  • Compounding means growth accelerates; at 7% a quantity roughly doubles in 10 periods.
  • Using the same multiplier for a decrease (a rate below zero) gives exponential decay, as in depreciation and decay of signals.
Chart data as tables

Ranked variables

VariableTypical rangeLowest resultHighest resultSwing ()Local stepChange in result
A Starting value10 to 10,000 16.2916,29016,270+10%+10 %
r Rate per period0.5 to 20 %1,0516,1925,141+10%+4.87 %
n Number of periods1 to 30 1,0504,3223,272+10%+5 %

Sweep of Number of periods

Number of periodsFinal value
11,050
4.6251,253
8.251,496
11.881,785
15.52,130
19.132,542
22.753,034
26.383,621
304,322

Sweep one variable

Final value ()Hover, touch, or use the arrow keys on the chart
1000200030004000 51015202530 Number of periods now 1,629

Variables and how each one contributes

B

Final value

Result ·

What the equation gives you. Everything else feeds it.

A

Starting value

· typical 10 to 10,000

Amount at the start. Directly proportional.

r

Rate per period

% · typical 0.5 to 20

Percentage change each period. Strong: the effect compounds, so a small rate gives a large change over many periods.

n

Number of periods

· typical 1 to 30

Number of times the rate is applied. Exponential: each extra period multiplies the value again.

Worked example with the values above

  1. Multiplier per period: 1 + 5/100 = 1.05.
  2. Raise to the power 10: 1.6289.
  3. B = 1,000 × 1.6289 = 1,629.

Assumptions and limits

  • The rate is constant each period.
  • Percentages are applied to the running value, not the original.

Common mistakes

  • Multiplying the rate by n instead of compounding it.
  • Entering a decrease as a positive rate.

Statistics and uncertainty

Errors in the rate are amplified by the power n: a 1% error in the multiplier becomes about n% in the result, so small rate errors matter over many periods.

Where it is used

  • Cost, mass and performance changes applied repeatedly.
  • Decay of battery capacity or signal strength per stage.

Maths you need

  • Powers: repeated multiplication
  • Percentages: multiplier 1 + r/100

Related formulas

Practise this formula