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
3.1k
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
Kilowatt vs Kilowatt hours?? Help please !
on Mar 25, 2025
Global
5
100+
Top answer by
Thabang
Coach
Ex-McKinsey Consultant | McKinsey Top Coach & Interviewer | Special Offer: Buy 1 Session Get 1 Free (Limited time!)
12
5 Answers
100+ Views
+2
Consulting
Business math cases
on Apr 30, 2024
Global
4
800+
Top answer by
#1 rated MBB & McKinsey Coach
22
4 Answers
800+ Views
+1
Consulting
Has anyone tried any of the AI Interview Tools for MBB before?
on Mar 25, 2025
Global
10
11.3k
Top answer by
Iman
Coach
Systemiq | Ex-BCG | 10 years experience with 8+ specialising in sustainability | Free Intro | Ex-PrepLounge candidate
344
10 Answers
11.3k Views
+7
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.