CAGR (Compound Annual Growth Rate)
InvestingThe smoothed annual rate of return that takes compounding into account, showing the geometric mean growth rate.
Example
Example: Consider an investor building a $100,000 portfolio. CAGR (Compound Annual Growth Rate) — the smoothed annual rate of return that takes compounding into account, showing the — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.