**Average annual growth rate (AAGR), **

### Definition of Average annual growth rate (AAGR):

The average annual growth rate is used in many fields of study. For example, in economics, it is used to provide a better picture of the changes in economic activity (e.g. growth rate in real GDP).

The average annual growth rate (AAGR) is the average increase in the value of an individual investment, portfolio, asset, or cash stream over the period of a year. It is calculated by taking the arithmetic mean of a series of growth rates. The average annual growth rate can be calculated for any investment, but it will not include any measure of the investment's overall risk, as measured by its price volatility.

The simple average increase in value of an investment or portfolio for a year-long period, calculated from multi-year figures.

### How to use Average annual growth rate (AAGR) in a sentence?

- This ratio helps you figure out how much average return you've received over several periods of time.
- AAGR is calculated by taking the arithmetic mean of a series of growth rates.
- AAGR is a linear measure that does not account for the effects of compounding.

Meaning of Average annual growth rate (AAGR) & Average annual growth rate (AAGR) Definition