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Compound annual growth rate (CAGR) refers to the average annual growth rate of an investment. The CAGR is measured over a specified amount of time and is used by business owners to determine the total returns for an investment.
Investments can fluctuate in value over time. Looking at the mean CAGR over the specified time period can increase the accuracy of the measurements. Business owners can assess their assets and portfolios to effectively manage their finances and investments.
Calculating CAGR
Applications Of CAGR
Calculating CAGR
Compound annual growth rate (CAGR) is calculated using a mathematical formula. Investors and businesses use the calculation to determine if their investments are worthwhile and to identify if their assets are gaining or losing value over time.
To calculate CAGR, you need to do the following:
Divide the value of the investment at the end of the specified time period by its value at ...