Writing & StyleStyle guide

CAGR Meaning and Formatting

CAGR means compound annual growth rate, a smoothed annualized growth rate over a period longer than one year. Use the uppercase initialism consistently and state the start/end period; do not imply that CAGR shows volatility or the exact growth in each intervening year.

Quick answer

CAGR means “compound annual growth rate.” It expresses a smoothed annualized rate across a multi-year period rather than the year-by-year path.

Key details

Core IssueCAGR means compound annual growth rate, a smoothed annualized growth rate over a period longer than one year.
Phrase Rolefinance abbreviation
Registerfinance, investment, analytics, and professional writing

Important caveats

Usage Boundary

Use the uppercase initialism consistently and state the start/end period; do not imply that CAGR shows volatility or the exact growth in each intervening year.

Further guidance

Meaning

CAGR expands to “compound annual growth rate.”

Sources and evidence

Sources are shown with the role they play in this guide. Historical or style-sensitive claims are kept within the evidence boundary described above.

  1. Understanding the Compound Annual Growth Rate (CAGR) for Investors (opens in a new tab)Investopedia · CAGR meaning as compound annual growth rate and its smoothed annual-growth interpretation

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