## anonymous 5 years ago how do i calculate CAGR?

1. anonymous

hi anyone here?

2. tim

hi Phil!

3. tim

Do you have an example or are you looking for a general explanation?

4. anonymous

not really, my teacher asked me

I think it can be calculated as the geometric mean of the decimal multiplier equivalents (i.e. +3% becomes 1.03 and -2% becomes 0.98) of the individual period-over-period changes in

in revenue, sorry.

7. heisenberg

I know it depends on a timespan and starting/ending values.

8. sid1729

Suppose the number of years you want to calculate it over is n. The rate is the nth root of total annual growth rate

9. heisenberg

$CAGR = \frac{V(t_n)}{V(t_0)}^\frac{1}{t_n - t_0} - 1$

10. tim

did you answer back? I hope you got the explanation to her in time :)

11. heisenberg

$t_n - t_0$ represents the time span