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Compound Annual Growth Rate

Expresses a smoothed annual compound growth rate.

Formula

CAGR = (Ending/Beginning)^(1/years)-1

Variables: Beginning value; ending value; years

What it means

Expresses a smoothed annual compound growth rate.

Example

100 growing to 121 over two years has CAGR 10%.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.