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

View Example In Notion