Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

CAGR- How to calculate large CAGRs that double or more in the expected time frame?

Hello All, 

I am stuck at understanding shortcuts for estimating large CAGRs:

- eg: a CAGR of 20% for 6 years for let's say $10 M

- eg: a CAGR of 40% for 3 years

- Calculating CAGR, let's say 2006- $6M and 2016 $60M-- how to calculate this mentally?

Thank you very much for your help and suggestions.

1
3.2k
22
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Vlad
Coach
on Aug 28, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

You can use the rule of 72:

72 / 20 = 3.6 - 3.6 years takes it to double

6 / 3.6 = 1.5 - 1.5 times it will double

10M * 2ˆ1.5 = 30M

If you google the rule of 72 you'll find tons of examples

Best

Similar Questions
Consulting
Fluctuations in casing performance - is this normal?
on Apr 10, 2025
Global
6
200+
Top answer by
Kacper
Coach
Engagement Manager | Mock interview | Problem Structuring | MECEness | Fit Q&A | Winning CV | +20 min FREE
20
6 Answers
200+ Views
+3
Consulting
Just did the Mckinsey Solve Game (January 2025) - got some questions/insights
on Apr 24, 2025
Global
5
3.3k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
36
5 Answers
3.3k Views
+2
Consulting
Employment Gap on Resume and How to talk about it during Interview
on Apr 14, 2025
Global
9
7.8k
Top answer by
Ariadna
Coach
BCG | Project Leader and Experienced Interviewer | MBA at London Business School
110
9 Answers
7.8k Views
+6
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.