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CAGR (Compound Annual Growth Rate) represents the constant annual growth rate that would produce the same result as actual growth over a period. It smooths volatility to give a single comparable number.
Trin-for-trin guide
- 1CAGR = (End Value / Start Value)^(1 / Years) − 1
- 2Convert to percentage by multiplying by 100
Løste eksempler
Input
$1,000 → $1,800 over 5 years
Resultat
CAGR = 12.47%
(1800/1000)^(1/5)−1 = 0.1247
Input
Revenue $2M → $5M over 4 years
Resultat
CAGR = 25.74%
Strong growth