What Is Compound Annual Growth?
CAGR is the annual return on investment that is required for growth from initial investment to an end value.
The Scenario
A company's year end revenue over a 7 year period wants to determine its CAGR. The original investment started at $1,000 in 2013 and ended at $30,000 in 2020.
Notion Formula
round(10000 * (pow(prop("End Value") / prop("Start Value"), 1 / prop("Years")) - 1)) / 10000
Breakdown
The equation from above: pow(prop("Goal Value") / prop("Start Value"), 1 / prop("Years")) - 1))
Divide final value and starting value: prop("End Value") / prop("Start Value")
Return above to exponent power: pow(prop("End Value") / prop("Start Value"), 1 / prop("Years"))
Subtract 1: - 1))
Round the result: round(10000 * (pow(prop("End Value") / prop("Start Value"), 1 / prop("Years")) - 1)) / 10000