Compound Annual Growth Rate


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.

Use this term in a sentence

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

​ Was this Helpful? YES  NO 10 people found this helpful.

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.

​ Was this Helpful? YES  NO 3 people found this helpful.

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.

​ Was this Helpful? YES  NO 12 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
compound amount of one compound annual return