Compound Annual Growth Rate

Definition

CAGR. The year over year growth rate applied to an investment or other part of a company's activities over a multiple-year period. One of the benefits of CAGR over other calculations is that it decrease the effects of volatility. The formula for calculating CAGR is (Current Value/Base Value)^(1/# of years) - 1.

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The compound annual growth rate was really interesting and it was cool to track and see how we got here.

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If you are going to take on an investment you need to try and get the best compound annual growth rate that you can get.

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The type of interest or growth an individual would like to see in there investment accounts is commonly known as compound annual growth rate, which is a rate that gives interest every year based on the new amount in the account.

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compound amount of one compound annual return