CAGR vs GMV
CAGR (Compound Annual Growth Rate) and GMV (Gross Merchandise Value) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: CAGR refers to compound annual growth rate, while GMV refers to gross merchandise value — they describe different things even when they show up in the same sentence.
CAGR — Compound Annual Growth Rate
The mean annual growth rate of an investment over a specified time period longer than one year.
GMV — Gross Merchandise Value
The total value of goods sold through a marketplace over a specific period.
When to use CAGR
Reach for "CAGR" when the conversation is specifically about compound annual growth rate. The mean annual growth rate of an investment over a specified time period longer than one year.
When to use GMV
Reach for "GMV" when the conversation is specifically about gross merchandise value. The total value of goods sold through a marketplace over a specific period.
FAQs
What is the difference between CAGR and GMV?
CAGR stands for Compound Annual Growth Rate — The mean annual growth rate of an investment over a specified time period longer than one year. GMV stands for Gross Merchandise Value — The total value of goods sold through a marketplace over a specific period.
Are CAGR and GMV the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. CAGR = Compound Annual Growth Rate. GMV = Gross Merchandise Value.
When should I use CAGR vs GMV?
Use CAGR when you're specifically referring to compound annual growth rate. Use GMV when the topic is gross merchandise value.