Finanza · Glossario
What is CAGR (Compound Annual Growth Rate)?
Definizione rapida
The mean annual growth rate of an investment over a specified period longer than one year, assuming reinvestment of returns.
Spiegazione completa
CAGR (Compound Annual Growth Rate) is the smoothed annual rate of return that takes a beginning value to an ending value over N years, assuming compounding. Formula: CAGR = (End / Start)^(1/N) − 1. CAGR is superior to simple average returns for comparing long-term investments because it accounts for compounding. The S&P 500 has a ~10% CAGR over 100 years, but in any given year it could be +30% or −40%. CAGR smooths that volatility. CAGR does NOT show volatility or risk — two investments with the same CAGR can have wildly different year-to-year experiences. Use standard deviation alongside CAGR to assess risk.
Calcolatori correlati
Calculators that use or explain CAGR.
Termini correlati
More from Finanza
APR (Annual Percentage Rate)
The yearly cost of a loan, expressed as a percentage, including most fees. Used when borrowing money.
APY (Annual Percentage Yield)
The yearly return on a deposit or investment, including the effect of compounding. Used when saving money.
Compound Interest
Interest calculated on the initial principal AND on the accumulated interest from previous periods. The engine of long-term wealth.
Simple Interest
Interest calculated only on the original principal, not on accumulated interest. Used in short-term and consumer loans.
Principal
The original sum of money borrowed or invested, not including interest. The base on which interest is calculated.
Amortization
Spreading loan payments over time so each payment covers both principal and interest, with the loan fully paid off at the end.
Last reviewed: June 15, 2026 • Category: Finanza