CAGR

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%.

See also

• Compound interest