What Is CAGR and How Do You Calculate It?
CAGR is the steady yearly rate that would grow your starting value to your ending value over a period. If ₹1 lakh became ₹2 lakh in 5 years, CAGR is about 14.9% — not the simple 20% average return.
CAGR formula
CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ years) − 1.
Use CAGR to compare investments with different time lengths on equal footing.