CAGR: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Kmacharla No edit summary |
imported>Doug Williamson (Standardise appearance of page) |
||
| Line 1: | Line 1: | ||
Compound Annual Growth Rate. | Compound Annual Growth Rate. | ||
Calculated from total growth over a multiple years period as: | |||
CAGR = (150/100)<sup>(1/2)</sup> - 1 = 22.5%. | |||
CAGR = ( ( End amount ) / ( Starting amount ) )<sup>(1/n)</sup> - 1 | |||
Where n = number of years. | |||
'''Example''' | |||
Sales grow from $100m to $150m over a two-year period. | |||
CAGR is: | |||
= ( 150 / 100 )<sup>(1/2)</sup> - 1 | |||
= 22.5%. | |||
== See also == | == See also == | ||
* [[Compound interest]] | * [[Compound interest]] | ||
Revision as of 17:03, 18 March 2015
Compound Annual Growth Rate.
Calculated from total growth over a multiple years period as:
CAGR = ( ( End amount ) / ( Starting amount ) )(1/n) - 1
Where n = number of years.
Example
Sales grow from $100m to $150m over a two-year period.
CAGR is:
= ( 150 / 100 )(1/2) - 1
= 22.5%.
