Compound Growth

Growth that accelerates because gains build on top of earlier gains; each period is calculated on the already-grown base.

Growth ConceptsTerm 13 / 81

Formula

Final value = Starting value × (1 + growth rate) ^ number of periods

In practice

People consistently underestimate compounding: 10% a month is roughly 3x over a year. Small, steady improvements usually beat large one-off moves.

Once the terms are clear, build the system.

Let’s pin down which metrics your company should watch and which lever to pull first.