CAGR CALCULATOR
📊 CAGR Calculator – Complete Guide
CAGR stands for Compound Annual Growth Rate. It is a financial metric that shows how much your investment has grown on average every year over a specific period. It is one of the most important tools for understanding long-term investment performance.
💡 Why is CAGR Important?
When you invest in mutual funds, stocks, or any long-term assets, looking only at total profit is not enough. CAGR helps you understand the consistent yearly growth of your investment.
For example, if you invested ₹10,000 and it became ₹25,000 in 5 years, CAGR tells you the exact average yearly return you earned.
📈 How Does CAGR Work?
CAGR assumes a steady growth rate over time. It smooths out market ups and downs and shows a simplified annual growth rate of your investment.
🚀 Why Investors Use CAGR
✔ To compare mutual funds performance ✔ To analyze stock returns ✔ To evaluate long-term investments ✔ To understand SIP growth better
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