Method Deck / finance

Percent change and CAGR

Computes the simple percent change between a starting and ending value, and the compound annual growth rate (CAGR) over a stated number of years.

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Inputs

Outputs

Steps

  1. percent_change = (end_value - start_value) / start_value * 100.
  2. CAGR as a decimal = (end_value / start_value) ^ (1 / years) - 1.
  3. cagr_percent = CAGR decimal * 100.
  4. Round percent_change and cagr_percent to 2 decimals.

Constants

None.

Sources

Worked example and test vectors

NameInputsAnswer
worked example{"start_value":1000,"end_value":2000,"years":5}Percent change 100.00%, CAGR 14.87%
test vector: decline{"start_value":5000,"end_value":4000,"years":2}Percent change -20.00%, CAGR -10.56%

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