Loading…
Loading…
Compound Annual Growth Rate — the smoothed-out annual growth rate of an investment over a period, assuming steady compounding.
If your ₹1L became ₹2L in 6 years, CAGR tells you the single steady yearly growth rate that would get you there — about 12.2% here.
CAGR only works cleanly for a single lump sum investment — use XIRR instead for SIPs or multiple cash flows.