The compound annual growth rate is the yearly growth rate calculated using an initial value and a target value over a specified period of time, taking into account the effects of interest compounding.

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. The compound annual growth rate (CAGR) shows the ...

The growth rate of an investment shows how much its value increases over time, helping to evaluate performance. A common way to calculate this is by using the compound annual growth rate (CAGR), which ...

Salary grew from $40,000 to $60,000 over 10 years; a 50% total increase. The compound annual growth rate (CAGR) of the salary is 4.14%. CAGR calculation captures consistent annual growth, allowing for ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax ...

CAGR stands for compound annual growth rate. The first thing to remember when it comes to a CAGR is that it’s just a mathematical equation used to understand roughly how much an amount is growing per ...

When calculating the CAGR, you must first add the periods and the values for each period. To do this, you need a column focused on Years and another column focused on the Amount. If you are still ...