foxex: What is the 'Compound Annual Growth Rate

Friday, July 5, 2019

The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year.

The compound annual growth rate isn't a true return rate, but rather a...

Related to "Compound Annual Growth Rate - CAGR"

The Compound Annual Growth Rate, known as CAGR, is a good and valuable tool to evaluate investment returns, however it does not measure risk.

How much are your investments actually returning? The method of calculation can make a significant difference in your true rate of return.

Simple interest works in your favor when you're a borrower, but against you when you're an investor.

Related Definitions

A stated annual interest rate is the return on an investment (ROI) that is expressed as a per-year percentage.

Compound is the ability of an asset to generate earnings, which are then reinvested to generate still more earnings.

An annualized rate is a rate of return for a given period that is less than one year but computed as if the rate were for a full year.

The yearly rate of return method is the rate of return achieved over a one year time period.

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