CAGR is a measure of an investment’s annual growth rate over time, with the effect of compounding taken into account. Learn how to calculate CAGR using a simple formula , see examples and download a free calculator. Compound Annual Growth Rate Definition Compound annual growth rate ( CAGR ) is a financial analysis metric that is used to measure the rate of return for an investment over a long period of time. CAGR assumes compounding or the reinvestment of profits into the original asset. In simple words, CAGR provides you with the investment's value if it produced steady annual returns and if all profits were reinvested back into the original asset for the duration of the investment. CAGR Formula The ... This post looks at how to calculate CAGR in Excel in 5 easy ways. CAGR (Compound Annual Growth Rate) calculates annual percentage growth. Learn how to use the Compound Annual Growth Rate ( CAGR) formula to better understand your portfolio's performance.
