What is CAGR?
Compound annual growth rate = (Ending ÷ Beginning)^(1/n) − 1, where n is the number of annual periods. It smooths volatility into a single constant growth rate, so it is best to review the individual years alongside it.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.