What is CAGR and How to Calculate It

AKASH
May 20, 2026

What is CAGR?

CAGR stands for Compound Annual Growth Rate. It measures annual investment growth over time.

CAGR Formula

CAGR = (Ending Value / Beginning Value) ^ (1 / Years) - 1

Why CAGR is Important

CAGR helps investors compare investment performance accurately.

Conclusion

CAGR is one of the best methods to evaluate long-term investment returns.