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April 18, 2017

What is CAGR?

Ever wondered what CAGR is and how it's calculated?

By Joao Lima

CAGR stands for compound annual growth rate and refers to a representational percentage that shows how much a sector, business or anything else has grown or will grow in a time-gap of at least two years.

This progressive rate shows just how much something is expected to grow on a constant rate.

For example, when analysts say the virtual reality market is expected to grow at 30% CAGR between 2016 and 2020, that means that each year this market will grow at a steady 30% on top of the previous year.

How is CAGR calculated?

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