Capital Growth Calculator

How the Capital Growth Calculator works

Capital growth calculator formula

Property growth compounds, so each year's rise is on the higher value:

Future value = price × (1 + rate ÷ 100) ^ years Growth rate (CAGR) = (value today ÷ price) ^ (1 ÷ years) − 1

The years to double is ln 2 ÷ ln(1 + rate), close to the rule of 72 (72 ÷ rate). Real prices do not rise evenly, so the projection shows one smooth path, not a forecast.

Worked example: projecting a value

A 500,000 property growing 5% a year is worth 525,000 after a year and 814,447 after 10 years. That is 314,447 of growth, or 62.9%, and at 5% a value doubles in 14.2 years.

Worked example: growth since purchase

A home bought for 350,000 is valued at 520,000 eight years later. The compound annual growth rate is 5.07%, from total growth of 170,000, or 48.6%. At that pace it would double in 14.0 years.

Capital growth reference table

What 100,000 grows to at 3%, 5% and 7% a year.

Quick answers

• At 7% a year a value doubles in about 10 years.
• At 3% a year it takes about 23 years.
• 5% a year for 20 years multiplies a value by 2.65.
• 50% total growth over 10 years is 4.1% a year.
• Growth figures are before inflation, buying and selling costs.
• Divide 72 by the growth rate to see how many years a value takes to double: about 14 years at 5%.

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