CAGR(CompoundAnnualGrowthRate)
Definition
The annualised rate of return that an investment would need to grow from its beginning value to its ending value, assuming profits are reinvested. CAGR smooths out the effects of volatility and provides a single growth rate over a period.
Example
If Rs 1 lakh grows to Rs 2 lakh in 5 years, the CAGR is approximately 14.87% per annum.
Related Calculators
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