
Formula: CAGR = (Ending ÷ Beginning)^(1/Years) − 1
Steps:
1) Divide Ending by Beginning
2) Raise the result to the power of 1/Years
3) Subtract 1, then multiply by 100 to get a percentage
Example: Beginning = 10,000; Ending = 15,000; Years = 3
(15,000 ÷ 10,000)^(1/3) − 1 ≈ 1.5^(0.3333) − 1 ≈ 0.1447 → 14.47%
.