Article content

Compound Annual Growth Rate [CAGR]

The compound annual growth rate, or CAGR, is a measure of growth over more than 1 year. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period. CAGR is an imaginary number as investments in reality seldom grow according to a compounded annual growth rate.

<< Back to Glossary Index

Picture of SOFI artificial intelligence

SOFI AI For Premium Members