CAGR: Difference between revisions
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For example, sales grow from $100m to $150m over a two-year period. | For example, sales grow from $100m to $150m over a two-year period. | ||
CAGR = (150/100)<sup>(1/2)</sup> - 1 | CAGR = (150/100)<sup>(1/2)</sup> - 1 = 22.5%. | ||
== See also == | == See also == | ||
* [[Compound interest]] | * [[Compound interest]] | ||
Revision as of 13:31, 28 May 2013
Compound Annual Growth Rate.
Calculated - for example - from total growth over a multiple years period as: CAGR = ([End amount]/[Starting amount])(1/n) - 1 Where n = number of years
For example, sales grow from $100m to $150m over a two-year period. CAGR = (150/100)(1/2) - 1 = 22.5%.
