Compound annual growth rate (CAGR) is the rate of return required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested.
 | | Term of the Day | Words to Know | | |  | | Compound Annual Growth Rate – CAGR | | Compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment's lifespan. | | Read More » | | Related to "Compound Annual Growth Rate – CAGR" | | | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Rate of Return | | A rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost. | | Read More » | | | Hurdle Rate | | A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor. Hurdle rates allow companies to make important decisions on whether to pursue a specific project. | | Read More » | | | Present Value | | Present value is the concept that states an amount of money today is worth more than that same amount in the future. In other words, money received in the future is not worth as much as an equal amount received today. | | Read More » | | | Future Value | | Future value (FV) is the value of a current asset at a date to come based on an assumed rate of growth over time. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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