CAGR (Compound Annual Growth Rate)

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning & Definition

CAGR stands for Compound Annual Growth Rate. It represents the annual growth rate of an investment over a specified period, assuming the profits are reinvested. CAGR helps compare different investments effectively.

Key Features

  • Measures annual growth
  • Smooths out volatility
  • Helps in investment comparison
  • Useful for long-term planning

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