Compound annual growth rate (CAGR)

The constant annual growth rate equivalent to an investment's total change over a period.

Compound annual growth rate, usually abbreviated as CAGR, expresses the constant yearly rate that would transform a starting value into an ending value over a given number of years.

CAGR makes results with different durations easier to compare, but it hides the path between the two values. It should therefore be read alongside drawdown, volatility and the equity curve rather than as a complete measure of strategy quality.