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Nifty 5024,206.91.02%H 24,228.45 · L 24,120.35|Sensex77,569.391.08%H 77,642.23 · L 77,320.56|Bank Nifty58,045.91.39%H 58,251.95 · L 57,576.7|USD / INR₹95.370.01%H ₹95.37 · L ₹95.37|Gold Intl (10g)₹1,25,543.080.47%H ₹1,26,070.47 · L ₹1,25,359.11|Silver Intl (1kg)₹1,81,596.551.56%H ₹1,83,344.29 · L ₹1,81,059.96|Crude WTI₹7,057.383.63%H ₹7,076.45 · L ₹6,979.18|Bitcoin$63,7410.88%H $64,022.1 · L $63,459.9|Ethereum$1,804.720.94%H $1,813.24 · L $1,796.2|Nifty 5024,206.91.02%H 24,228.45 · L 24,120.35|Sensex77,569.391.08%H 77,642.23 · L 77,320.56|Bank Nifty58,045.91.39%H 58,251.95 · L 57,576.7|USD / INR₹95.370.01%H ₹95.37 · L ₹95.37|Gold Intl (10g)₹1,25,543.080.47%H ₹1,26,070.47 · L ₹1,25,359.11|Silver Intl (1kg)₹1,81,596.551.56%H ₹1,83,344.29 · L ₹1,81,059.96|Crude WTI₹7,057.383.63%H ₹7,076.45 · L ₹6,979.18|Bitcoin$63,7410.88%H $64,022.1 · L $63,459.9|Ethereum$1,804.720.94%H $1,813.24 · L $1,796.2|
BreakingSave Tax on Your Child’s Education: Section 80C and Allowance Benefits Explained1/6

Compound Annual Growth Rate (CAGR)

The smoothed annual growth rate of an investment over time.

Definition

Compound Annual Growth Rate (CAGR) is the constant annual rate at which an investment would have grown if it compounded steadily over a period. It smooths out year-to-year volatility to give a single 'average' annual return.

Formula
CAGR = (Ending Value / Beginning Value)^(1 / years) − 1
Example

₹1,00,000 growing to ₹2,00,000 over 6 years has a CAGR of about 12.2% per year.

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