Annual return (CAGR) — meaning explained

Annual return (CAGR): Average yearly growth, smoothed out.

What it means

Compound annual growth rate flattens the bumpy years into one average number so you can compare investments over different time spans.

Category

Money — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.