Compound Annual Growth Rate (CAGR)
Term category: Finance/Accounting
In 10 words or less: The compounding rate of return over a period.
Definition: The compound annual growth rate (CAGR) is the rate at which an investment grows annually to reach a given end value. It's calculated by the following:
[(Ending Value/Beginning Value)^(1/# of years)] -1
Advice: CAGR is a...
read entire definition