DEFINITION of 'Compound Net Annual Rate  CNAR'
The return on an investment after taking tax implications into consideration. The compound net annual rate (CNAR) is much like an investment's compound annual rate except that tax liability is taken into account. CNAR is a truer representation of investment returns because it illustrates investors' actual return after taxation, rather than just unrealized gains or losses.
INVESTOPEDIA EXPLAINS 'Compound Net Annual Rate  CNAR'
For example, if an investor invests $1,000 in a oneyear certificate of deposit (CD) with an interest rate of 5% paid annually, their expected annual return on this investment is $50. However, if interest income is taxed at 30%, the investor's compound net annual rate of return is actually 3.5%, or $35 ($50 x $0.70). As you can see, CNAR gives a much more accurate real return for an investor.

Compound Annual Growth Rate  CAGR
The yearoveryear growth rate of an investment over a specified ... 
Average Annual Growth Rate  AAGR
The average increase in the value of an individual investment ... 
Compound Return
The rate of return, usually expressed as a percentage, that represents ... 
Average Return
The simple mathematical average of a series of returns generated ... 
TimeWeighted Rate of Return
A measure of the compound rate of growth in a portfolio. Because ... 
Rate Of Return
The gain or loss on an investment over a specified period, expressed ...

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