How this calculator works
The rate applies once per chosen appreciation period. Reinvested growth increases the base for the next interval, while a negative rate models depreciation. Fractional periods use exponential interpolation. This is a constant-rate asset-value model; upkeep, selling costs, income and inflation are excluded.
Formula
F = P(1+r)^(mt); r = (F/P)^(1/(mt)) - 1; t = ln(F/P)/(m ln(1+r)). P and F are asset values, r is growth per selected interval and m is intervals per model year.
Worked example
An asset worth $10,000 appreciating 10% yearly reaches $12,100 after two years. At -10% yearly, $100 falls to $81 over two years.
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Frequently asked questions
Is appreciation the same as total investment return?
Appreciation measures price change. Rent, dividends and other income are separate.
What does a monthly rate mean?
A 1% monthly rate compounds twelve times in one year; it is not the same as 1% per year.
Can a constant price determine the elapsed time?
Only when the nonzero rate makes zero elapsed time the solution. At a zero rate there is no unique time.