CoachNed
Start free week

Calculator

CAGR calculator

(end / start) ^ (1 / years) − 1. Then say whether that rate is fast enough to care.

10.0%

Compound annual growth rate

Implied multiple
1.61×
Formula
(161 / 100)^(1 / 5) − 1

How to say it

Write (end / start) ^ (1 / years) − 1. Estimate first (rule of 72). Then attach a comparison: is that faster than the market, and does it change the recommendation?

Out loud
“100 to 161 over five years is 10% CAGR, a 1.61× multiple. Category grew 3%, so this brand took share. I would keep investing.”

Usual miss. Quoting 12% because you divided 61 by 5. Compounding is not a simple average.

Need volume and price instead? Use the market size calculator or the math drill.

FAQ

What does CAGR actually mean in a case?

The constant yearly rate that takes you from start to end over n years. Interviewers want the rate and the so-what: is that faster than the market, and does it change the recommendation?

Why not just use average annual growth?

A simple average ignores compounding. 100 → 161 over 5 years is 10% CAGR, not 61% / 5 = 12.2%.

Can I use this on a live case?

Yes for practice. In the interview, estimate first (rule of 72, doubling) and only punch the calculator if the number would flip the decision.

Related tools