I don't remember in which topic I found it but I know it was there. And I still have not find a proof of this nice approximation.
Let $x$ be a non perfect square number. If $y$ is the closer perfect square to $x$ such that $y < x$ then
$$\sqrt{x}\approx \sqrt{y}+\frac{x-y}{2\cdot \sqrt{y}}$$ And it gives at the maximum two correct decimals after the decimal point.
My first reaction to try to find from where this formula goes, was to expand it, I found $$2\sqrt{xy}\approx y +\sqrt{2y}\cdot(x-y)$$ and I tried to find a remarkable identity but I failed and I'm still stuck there. Also I don't know how should I prove the maximum of two correct digits after the comma.
If we look for example to the sqare root time of $1000$, $961$ is the closer perfect square which verifies the condition. Then we have $\sqrt{1000} \approx 31 + \frac{39}{2*31} = 31.62903...$ and with a calculator we have $\sqrt{1000} = 31.6227766017...$ which is quite good.
Any hints would be appreciate, thank you in advance.
We may as well suppose that $y_0^2 < x < (y_0+1)^2$ for some integer $y_0$. It isn't that hard to show that $y_0 < \sqrt x < \dfrac {x}{y_0} < y_0+1$. So we can replace $\sqrt x \in (y_0, y_0+1)$ with $\sqrt x \in \left(y_0, \dfrac {x}{y_0} \right)$. Which is a smaller interval. Your algorithm chooses the next approximation, $y_1$, to be the midpoint of that interval, $y_1 = \dfrac 12 \left( y_0 +\dfrac {x}{y_0} \right) = y_0 - \dfrac 12 \left( y_0 -\dfrac {x}{y_0} \right) = y_0 - \dfrac{y_0^2 - x}{2y_0}$
Define $y_{n+1} = \dfrac 12 \left( y_n +\dfrac {x}{y_n} \right) = y_n - \dfrac{y_n^2 - x}{2y_n}$
It can be shown that $y_0 < y_2 < y_4 \cdots < \sqrt x < \cdots < y_5 < y_3 < y_1$ and that $\displaystyle \lim_{n \to \infty}y_n = \sqrt x$.
Your question is about how fast the sequence $\{ y_n \}_{n=0}^\infty$ converges to $\sqrt x$. In particular, we find that
\begin{align} \dfrac{|y_{n+1} - \sqrt x|}{|y_n - \sqrt x|^2} &= \dfrac {\left|\dfrac 12\left(y_n+\dfrac{x}{y_n}\right)-\sqrt x \right|} {|y_n - \sqrt x|^2}\\ &= \dfrac {|y_n^2 + x- 2y_n\sqrt x|} {2y_n|y_n^2 - 2y_n\sqrt x + x|}\\ &= \dfrac{1}{2y_n} \end{align}
Which we can interpret as $|y_{n+1} - \sqrt x| \approx \dfrac{1}{2\sqrt x} |y_n - \sqrt x|^2$
So if the error of the $n^{th}$ approximation is on the order of $10^{-m}$, then the error of the $(n+1)^{th}$ approximation will be on the order of $10^{-2m}$. In practical terms, the number of correct digits (approximately) doubles. This statement seems to be true for all $x >> 1$.