Market sizing & growth · Core
Compound annual growth rate
Also called: CAGR
ELI5
The smooth yearly growth rate between two values.
Used in conversation
“CAGR hides what happened in the years between.”
Definition
The constant annual rate that would turn a starting value into an ending value over a period.
Here “Compound annual growth rate” means: The constant annual rate that would turn a starting value into an ending value over a period.
Pitch context
You will see “Compound annual growth rate” in strategy decks, market analyses, business plans and planning workshops when the discussion reaches market sizing & growth.
Why it matters: It helps a reader interpret market sizing & growth without confusing the measure, decision, role or evidence being discussed.
Sources & evidence · 5
Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.
- Strategyzer — Business Model Canvas resourcesSupporting source family · practitioner · checked 2026-08-16
- Strategyzer — Value Proposition Canvas resourcesSupporting source family · practitioner · checked 2026-08-16
- LEANSTACK — Lean CanvasSupporting source family · practitioner · checked 2026-08-16
- U.S. Department of Justice Antitrust Division — Herfindahl-Hirschman IndexSupporting source family · primary · checked 2026-08-16
- U.S. Census Bureau — Business and economy dataSupporting source family · primary · checked 2026-08-16