---
title: "CAGR (Compound Annual Growth Rate) — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/cagr/
---

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# CAGR (Compound Annual Growth Rate)

Also called: compound annual growth rate

The smoothed annual rate at which a value would have grown to reach its ending amount over a period.

CAGR converts total growth over several years into a single annualized rate, which makes holdings of different durations comparable.

It smooths away everything that happened in between. Two investments with identical CAGR can have had very different volatility along the way.

## Put a number on it

This term feeds the calculators below.

- [CAGR CalculatorCompute the compound annual growth rate between two values over time.](/calculators/cagr/)
- [Retirement Savings CalculatorProject retirement savings growth and future income needs.](/calculators/retirement/)

## Related terms

- [ROI (Return on Investment)Total return relative to what was invested, usually including cash flow, principal paydown, and appreciation.](/glossary/roi/)
- [AppreciationAn increase in a property’s value over time, from market movement or from improvements made to it.](/glossary/appreciation/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)
- [CapEx (Capital expenditures)](/glossary/capex/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)