Economics

Compound annual growth rate

Compound annual growth rate is a financial measure of value, return, cost, or cash flow.

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CAGR = ((B / A)^(1/n) − 1) × 100%

What it means

Compound annual growth rate is a financial measure of value, return, cost, or cash flow.

How it works and where it is used

Use this calculation for comparing economic indicators and measuring averages, variation, and growth rates.