Compound annual growth rate (CAGR)
The steady yearly rate that would turn a starting value into an ending value over a period.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Burn rate
Cash leaving a business each month net of cash coming in.
- Cap rate
A rental property's yearly net operating income divided by its price. A quick measure of return before borrowing.
- compound interest
When the money you earn from savings or investments starts earning its own money on top of itself over time. The longer you leave it alone the faster it tends to grow.
- corporate bond
A loan you give directly to a company instead of a government, and the company promises to pay you back with interest over a set period of time.
- coupon rate
A coupon rate is the percentage of interest a bond pays you each year based on its face value. For example if a bond has a face value of one thousand dollars and a coupon rate of five percent, you receive fifty dollars per year in interest payments.
- Discount rate
The return you demand to accept future money today; higher rate, lower present value.
- Interest rate risk
The chance a bond's price falls because rates rose.
- Marginal tax rate
The rate on your last dollar of income. The rate that matters for most decisions.
Ask about Compound annual growth rate (CAGR)
A model reads this page and answers from it. It will say when the answer is not on the page. Education, not personalized advice.