40:
799:
1407:
811:
1159:
CAGR can also be used to calculate mean annualized growth rates on quarterly or monthly values. The numerator of the exponent would be the value of 4 in the case of quarterly, and 12 in the case of monthly, with the denominator being the number of corresponding periods involved.
1039:
1184:
Forecasting future values based on the CAGR of a data series (you find future values by multiplying the last datum of the series by (1 + CAGR) as many times as years required). As with every forecasting method, this method has a calculation error
887:
1154:
1114:
1078:
873:
less meaningful. It is particularly useful to compare growth rates of various data values, such as revenue growth of companies, or of economic values, over time.
756:
841:
375:
151:
1326:
1274:
834:
1223:
512:
360:
1228:
453:
1437:
1034:{\displaystyle \mathrm {CAGR} (t_{0},t_{n})=\left({\frac {V(t_{n})}{V(t_{0})}}\right)^{\frac {1}{t_{n}-t_{0}}}-1}
827:
1188:
Analyzing and communicating the behavior, over a series of years, of different business measures such as sales,
1432:
558:
365:
497:
485:
1266:
The
Handbook of Traditional and Alternative Investment Vehicles: Investment Characteristics and Strategies
387:
217:
141:
1427:
1397:
507:
490:
370:
392:
865:
annualized growth rate for compounding values over a given time period. CAGR smoothes the effect of
581:
546:
382:
1243:
1119:
551:
473:
468:
440:
23:
1200:
783:
534:
350:
345:
330:
297:
156:
1316:
1264:
1083:
1047:
1193:
623:
598:
502:
435:
161:
124:
102:
97:
866:
541:
355:
200:
8:
751:
628:
463:
425:
166:
129:
588:
16:
Geometric progression ratio that provides a constant rate of return over the time period
1238:
703:
430:
397:
335:
1322:
1270:
778:
766:
723:
568:
563:
287:
212:
638:
1213:
713:
698:
224:
195:
183:
173:
109:
89:
59:
54:
1411:
1218:
1173:
870:
815:
718:
678:
658:
524:
325:
320:
315:
282:
254:
114:
1291:
1233:
1181:
Comparing the historical returns of stocks with bonds or with a savings account
773:
688:
683:
340:
190:
146:
64:
39:
31:
1262:
608:
1421:
1361:
708:
693:
668:
653:
648:
643:
618:
613:
277:
239:
136:
1189:
803:
728:
673:
633:
420:
292:
259:
249:
207:
84:
79:
733:
244:
229:
663:
593:
529:
480:
1263:
Mark J. P. Anson; Frank J. Fabozzi; Frank J. Jones (3 December 2010).
761:
603:
234:
119:
74:
1385:
1342:
1199:
Calculating mean annualized growth rates of economic data, such as
1178:
Demonstrating and comparing the performance of investment advisors
1406:
861:) is a business, economics and investing term representing the
810:
1292:"Compound Annual Growth Rate (CAGR) Definition | Investopedia"
402:
178:
862:
1318:
Harvard
Business School Confidential: Secrets of Success
1395:
1362:"Compound Annual Growth Rate CAGR: Summary and Forum"
1122:
1086:
1050:
890:
1203:, over annual, quarterly or monthly time intervals.
1356:
1354:
1352:
1172:Calculating and communicating the mean returns of
1148:
1108:
1072:
1033:
1419:
1388:. Bureau of Economic Analysis. January 11, 2008.
1345:. Bureau of Economic Analysis. January 11, 2008.
1168:These are some of the common CAGR applications:
1349:
1256:
835:
1386:"How is average annual growth calculated?"
1343:"How is average annual growth calculated?"
1314:
842:
828:
1321:. John Wiley & Sons. pp. 185–.
1269:. John Wiley & Sons. pp. 489–.
1308:
881:For annual values, CAGR is defined as:
1420:
152:Measures of national income and output
869:of periodic values that can render
13:
901:
898:
895:
892:
14:
1449:
1405:
1289:
809:
797:
38:
1315:Emily Chan (27 November 2012).
1163:
1378:
1335:
1283:
1103:
1090:
1067:
1054:
982:
969:
961:
948:
931:
905:
757:Publications in macroeconomics
1:
1249:
7:
1207:
1149:{\displaystyle t_{n}-t_{0}}
876:
855:Compound annual growth rate
10:
1454:
508:New neoclassical synthesis
491:Real business-cycle theory
1156:is the number of years.
1109:{\displaystyle V(t_{n})}
1073:{\displaystyle V(t_{0})}
513:Saltwater and freshwater
1244:Internal Rate of Return
441:International economics
366:Overlapping generations
1438:Non-Newtonian calculus
1229:Continuous compounding
1201:gross domestic product
1150:
1116:is the end value, and
1110:
1080:is the initial value,
1074:
1035:
784:Mathematical economics
535:Modern monetary theory
298:Universal basic income
1224:Average annual return
1194:customer satisfaction
1151:
1111:
1075:
1036:
624:Wesley Clair Mitchell
599:Thomas Robert Malthus
436:Development economics
1433:Mathematical finance
1214:Annual growth %
1120:
1084:
1048:
888:
361:Ramsey–Cass–Koopmans
201:Liquidity preference
816:Business portal
752:Macroeconomic model
629:John Maynard Keynes
426:Economic statistics
371:General equilibrium
1239:Exponential growth
1196:, and performance.
1146:
1106:
1070:
1031:
704:Edward C. Prescott
431:Monetary economics
1428:Actuarial science
1328:978-1-118-58344-9
1276:978-1-118-00869-0
1022:
986:
852:
851:
779:Political economy
734:N. Gregory Mankiw
724:Thomas J. Sargent
569:Market monetarism
383:Endogenous growth
213:National accounts
1445:
1410:
1409:
1401:
1390:
1389:
1382:
1376:
1375:
1373:
1372:
1366:www.12manage.com
1358:
1347:
1346:
1339:
1333:
1332:
1312:
1306:
1305:
1303:
1302:
1287:
1281:
1280:
1260:
1174:investment funds
1155:
1153:
1152:
1147:
1145:
1144:
1132:
1131:
1115:
1113:
1112:
1107:
1102:
1101:
1079:
1077:
1076:
1071:
1066:
1065:
1040:
1038:
1037:
1032:
1024:
1023:
1021:
1020:
1019:
1007:
1006:
993:
991:
987:
985:
981:
980:
964:
960:
959:
943:
930:
929:
917:
916:
904:
871:arithmetic means
844:
837:
830:
814:
813:
804:Money portal
802:
801:
800:
714:William Nordhaus
699:Robert Lucas Jr.
589:François Quesnay
225:Nominal rigidity
196:Demand for money
174:Microfoundations
110:Financial crisis
90:Effective demand
60:Aggregate supply
55:Aggregate demand
42:
19:
18:
1453:
1452:
1448:
1447:
1446:
1444:
1443:
1442:
1418:
1417:
1416:
1404:
1396:
1394:
1393:
1384:
1383:
1379:
1370:
1368:
1360:
1359:
1350:
1341:
1340:
1336:
1329:
1313:
1309:
1300:
1298:
1288:
1284:
1277:
1261:
1257:
1252:
1219:Arithmetic mean
1210:
1166:
1140:
1136:
1127:
1123:
1121:
1118:
1117:
1097:
1093:
1085:
1082:
1081:
1061:
1057:
1049:
1046:
1045:
1015:
1011:
1002:
998:
997:
992:
976:
972:
965:
955:
951:
944:
942:
938:
937:
925:
921:
912:
908:
891:
889:
886:
885:
879:
848:
808:
798:
796:
789:
788:
747:
739:
738:
719:Joseph Stiglitz
679:Milton Friedman
659:Friedrich Hayek
584:
574:
573:
456:
446:
445:
416:
408:
407:
393:Mundell–Fleming
388:Matching theory
326:Keynesian cross
311:
303:
302:
273:
265:
264:
50:
17:
12:
11:
5:
1451:
1441:
1440:
1435:
1430:
1415:
1414:
1392:
1391:
1377:
1348:
1334:
1327:
1307:
1282:
1275:
1254:
1253:
1251:
1248:
1247:
1246:
1241:
1236:
1234:Geometric mean
1231:
1226:
1221:
1216:
1209:
1206:
1205:
1204:
1197:
1186:
1182:
1179:
1176:
1165:
1162:
1143:
1139:
1135:
1130:
1126:
1105:
1100:
1096:
1092:
1089:
1069:
1064:
1060:
1056:
1053:
1042:
1041:
1030:
1027:
1018:
1014:
1010:
1005:
1001:
996:
990:
984:
979:
975:
971:
968:
963:
958:
954:
950:
947:
941:
936:
933:
928:
924:
920:
915:
911:
907:
903:
900:
897:
894:
878:
875:
850:
849:
847:
846:
839:
832:
824:
821:
820:
819:
818:
806:
791:
790:
787:
786:
781:
776:
774:Microeconomics
771:
770:
769:
759:
754:
748:
745:
744:
741:
740:
737:
736:
731:
726:
721:
716:
711:
706:
701:
696:
691:
689:Lawrence Klein
686:
684:Paul Samuelson
681:
676:
671:
666:
661:
656:
651:
646:
641:
639:Michał Kalecki
636:
631:
626:
621:
616:
611:
606:
601:
596:
591:
585:
580:
579:
576:
575:
572:
571:
566:
561:
559:Disequilibrium
556:
555:
554:
547:Post-Keynesian
544:
539:
538:
537:
527:
516:
515:
510:
505:
500:
495:
494:
493:
483:
478:
477:
476:
471:
457:
452:
451:
448:
447:
444:
443:
438:
433:
428:
423:
417:
415:Related fields
414:
413:
410:
409:
406:
405:
400:
395:
390:
385:
380:
379:
378:
368:
363:
358:
353:
348:
343:
341:Phillips curve
338:
333:
328:
323:
318:
312:
309:
308:
305:
304:
301:
300:
295:
290:
285:
280:
274:
271:
270:
267:
266:
263:
262:
257:
252:
247:
242:
237:
232:
227:
222:
221:
220:
210:
205:
204:
203:
193:
191:Money creation
188:
187:
186:
176:
171:
170:
169:
164:
159:
149:
147:Liquidity trap
144:
139:
134:
133:
132:
127:
117:
112:
107:
106:
105:
100:
92:
87:
82:
77:
72:
67:
65:Business cycle
62:
57:
51:
49:Basic concepts
48:
47:
44:
43:
35:
34:
32:Macroeconomics
28:
27:
15:
9:
6:
4:
3:
2:
1450:
1439:
1436:
1434:
1431:
1429:
1426:
1425:
1423:
1413:
1408:
1403:
1402:
1399:
1387:
1381:
1367:
1363:
1357:
1355:
1353:
1344:
1338:
1330:
1324:
1320:
1319:
1311:
1297:
1293:
1286:
1278:
1272:
1268:
1267:
1259:
1255:
1245:
1242:
1240:
1237:
1235:
1232:
1230:
1227:
1225:
1222:
1220:
1217:
1215:
1212:
1211:
1202:
1198:
1195:
1191:
1187:
1183:
1180:
1177:
1175:
1171:
1170:
1169:
1161:
1157:
1141:
1137:
1133:
1128:
1124:
1098:
1094:
1087:
1062:
1058:
1051:
1028:
1025:
1016:
1012:
1008:
1003:
999:
994:
988:
977:
973:
966:
956:
952:
945:
939:
934:
926:
922:
918:
913:
909:
884:
883:
882:
874:
872:
868:
864:
860:
856:
845:
840:
838:
833:
831:
826:
825:
823:
822:
817:
812:
807:
805:
795:
794:
793:
792:
785:
782:
780:
777:
775:
772:
768:
765:
764:
763:
760:
758:
755:
753:
750:
749:
743:
742:
735:
732:
730:
727:
725:
722:
720:
717:
715:
712:
710:
709:Peter Diamond
707:
705:
702:
700:
697:
695:
694:Edmund Phelps
692:
690:
687:
685:
682:
680:
677:
675:
672:
670:
669:Richard Stone
667:
665:
662:
660:
657:
655:
654:Joan Robinson
652:
650:
649:Simon Kuznets
647:
645:
644:Gunnar Myrdal
642:
640:
637:
635:
632:
630:
627:
625:
622:
620:
619:Irving Fisher
617:
615:
614:Knut Wicksell
612:
610:
607:
605:
602:
600:
597:
595:
592:
590:
587:
586:
583:
578:
577:
570:
567:
565:
562:
560:
557:
553:
550:
549:
548:
545:
543:
540:
536:
533:
532:
531:
528:
526:
523:
522:
521:
520:
514:
511:
509:
506:
504:
501:
499:
496:
492:
489:
488:
487:
486:New classical
484:
482:
479:
475:
472:
470:
467:
466:
465:
462:
461:
460:
455:
450:
449:
442:
439:
437:
434:
432:
429:
427:
424:
422:
419:
418:
412:
411:
404:
401:
399:
396:
394:
391:
389:
386:
384:
381:
377:
374:
373:
372:
369:
367:
364:
362:
359:
357:
354:
352:
349:
347:
344:
342:
339:
337:
334:
332:
329:
327:
324:
322:
319:
317:
314:
313:
307:
306:
299:
296:
294:
291:
289:
286:
284:
281:
279:
276:
275:
269:
268:
261:
258:
256:
253:
251:
248:
246:
243:
241:
240:Shrinkflation
238:
236:
233:
231:
228:
226:
223:
219:
216:
215:
214:
211:
209:
206:
202:
199:
198:
197:
194:
192:
189:
185:
182:
181:
180:
177:
175:
172:
168:
165:
163:
160:
158:
155:
154:
153:
150:
148:
145:
143:
140:
138:
137:Interest rate
135:
131:
128:
126:
123:
122:
121:
118:
116:
113:
111:
108:
104:
101:
99:
96:
95:
94:Expectations
93:
91:
88:
86:
83:
81:
78:
76:
73:
71:
68:
66:
63:
61:
58:
56:
53:
52:
46:
45:
41:
37:
36:
33:
30:
29:
25:
21:
20:
1380:
1369:. Retrieved
1365:
1337:
1317:
1310:
1299:. Retrieved
1296:Investopedia
1295:
1285:
1265:
1258:
1190:market share
1167:
1164:Applications
1158:
1043:
880:
858:
854:
853:
729:Paul Krugman
674:Hyman Minsky
634:Alvin Hansen
518:
517:
458:
421:Econometrics
398:Overshooting
351:Harrod–Domar
346:Arrow–Debreu
293:Central bank
260:Unemployment
250:Supply shock
208:Money supply
85:Disinflation
80:Demand shock
69:
1185:associated.
609:LĂ©on Walras
503:Supply-side
336:Accelerator
245:Stagflation
230:Price level
125:Demand-pull
1422:Categories
1371:2019-05-02
1301:2016-03-04
1250:References
867:volatility
664:John Hicks
594:Adam Smith
552:Circuitism
542:Ecological
530:Chartalism
481:Monetarism
459:Mainstream
356:Solow–Swan
331:Multiplier
288:Commercial
184:Endogenous
142:Investment
1192:, costs,
1134:−
1026:−
1009:−
762:Economics
604:Karl Marx
519:Heterodox
498:Stockholm
464:Keynesian
235:Recession
130:Cost-push
120:Inflation
75:Deflation
1412:Business
1208:See also
877:Equation
746:See also
525:Austrian
283:Monetary
272:Policies
103:Rational
98:Adaptive
24:a series
22:Part of
767:Applied
564:Marxian
454:Schools
1398:Portal
1325:
1290:root.
1273:
1044:where
582:People
310:Models
278:Fiscal
255:Saving
115:Growth
403:NAIRU
321:AD–AS
316:IS–LM
179:Money
1323:ISBN
1271:ISBN
863:mean
859:CAGR
469:Neo-
376:DSGE
70:CAGR
474:New
218:SNA
167:NNI
162:GNI
157:GDP
1424::
1364:.
1351:^
1294:.
26:on
1400::
1374:.
1331:.
1304:.
1279:.
1142:0
1138:t
1129:n
1125:t
1104:)
1099:n
1095:t
1091:(
1088:V
1068:)
1063:0
1059:t
1055:(
1052:V
1029:1
1017:0
1013:t
1004:n
1000:t
995:1
989:)
983:)
978:0
974:t
970:(
967:V
962:)
957:n
953:t
949:(
946:V
940:(
935:=
932:)
927:n
923:t
919:,
914:0
910:t
906:(
902:R
899:G
896:A
893:C
857:(
843:e
836:t
829:v
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
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