CAGR
Compound annual growth rate
The steady yearly growth rate that takes an investment from its starting value to its ending value.
CAGR smooths out the ups and downs into one yearly rate: (end value ÷ start value)^(1 ÷ years) − 1. It fits a single investment made once.
For SIPs, top-ups or withdrawals on different dates, use XIRR instead.
Example
₹1 lakh that grows to ₹2 lakh in 6 years has a CAGR of about 12.2%.
CAGR Calculator
The steady yearly growth rate that turns what you invested into what it's worth now.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.