1. What is the Stock Growth Formula?

The Stock Growth Formula calculates the future value of an investment based on its current price, expected growth rate, and time period. It helps investors estimate potential returns on their investments.

2. How Does the Calculator Work?

The calculator uses the Stock Growth Formula:

Where:

• \( Current\ Price \) — Current price of the stock in USD
• \( Growth\ Rate \) — Expected annual growth rate (as decimal, e.g., 0.1 for 10%)
• \( years \) — Investment period in years

Explanation: The formula accounts for compound growth over time, showing how investments grow exponentially when returns are reinvested.

3. Importance of Future Value Calculation

Details: Calculating future value helps investors make informed decisions, compare investment options, and plan for financial goals.

4. Using the Calculator

Tips: Enter current price in USD, growth rate as decimal (e.g., 0.1 for 10%), and investment period in years. All values must be valid (price > 0, growth rate ≥ 0, years > 0).

5. Frequently Asked Questions (FAQ)

Q1: How accurate are these projections?
A: Projections are based on constant growth rate assumptions. Actual returns may vary due to market volatility.

Q2: Should I include dividends in the growth rate?
A: For total return calculations, use a growth rate that includes both price appreciation and dividend reinvestment.

Q3: What's a reasonable growth rate to assume?
A: Historical average stock market return is about 7-10% annually, but individual stocks may vary significantly.

Q4: Can I use this for other investments?
A: Yes, this formula works for any investment with compound growth, including mutual funds and ETFs.

Q5: How does inflation affect these calculations?
A: For real (inflation-adjusted) returns, use a real growth rate (nominal rate minus inflation rate).