how to calculate cumulative growth | personal finance tips

How to Calculate Cumulative Growth.

Cumulative growth is a term used to describe a percentage of increase over a set period of time. Cumulative growth can be used to measure growth in the past and, thereby, to plan for population growth, estimate organic cell growth, measure sales growth, and so on. It is a useful descriptive tool in figuring out how growth has developed over time or how growth will continue to develop. Investors, marketers, and business planners need to know how to calculate cumulative growth, often expressed as CAGR (cumulative average growth rate), because it appears frequently in the financial sections of companies' annual reports. The following article discusses several ways to go about finding and using CAGR.

Method 1 Calculating CAGR Manually.
1. Identify the values needed to calculate CAGR. In order to calculate CAGR, you will need a few essential values. This includes the starting value, ending or finishing value, and the period of time over which you wish to measure growth.
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