# Glossary:Annual average growth rate (AAGR)

The **annual average growth rate**, abbreviated as **AAGR** and more accurately known as the **compound annual growth rate**, shows an average value for the annual rate of change over a period of time (typically several years) allowing for the compound effect of growth.

This rate facilitates comparisons of rates of change for periods of different lengths, for example, comparing annual, five-yearly and ten-yearly rates of change. This rate is calculated by taking the *n*^{th} root of the rate of change (as a percentage) between the value at the beginning and end of the period, where *n* is the number of years between the beginning the two values.