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CAGR - Compound Annual Growth Rate

What Does Compound Annual Growth Rate - CAGR Mean?
The year-over-year growth rate of an investment over a specified period of time.

The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered.

This can be written as follows:

Compound Annual Growth Rate (CAGR)



Financial Dictionary - C - CAGR - Compound Annual Growth Rate