Basics
What is CAGR (Compound Annual Growth Rate)? — Meaning, Definition & Example
Definition
CAGR measures the mean annual growth rate of an investment over a specified time period longer than one year. It smoothens out volatility and shows a steady annual return. Formula: CAGR = (Ending Value / Beginning Value)^(1/years) - 1.
💡 Real Example
₹1 lakh invested growing to ₹3 lakh in 10 years has CAGR of 11.61% — this is the effective annual growth rate, smoothing out yearly fluctuations.
🇮🇳 CAGR (Compound Annual Growth Rate) in Hindi / हिंदी में
CAGR (चक्रवृद्धि वार्षिक वृद्धि दर) — CAGR एक वर्ष से अधिक की अवधि में निवेश की औसत वार्षिक वृद्धि दर मापता है।
CAGR (Hinglish) — CAGR ek investment ki mean annual growth rate batata hai ek specific time period mein. Volatility ko smooth karke steady annual return dikhata hai.
❓ Frequently Asked Questions
What is CAGR (Compound Annual Growth Rate) in simple words?
CAGR measures the mean annual growth rate of an investment over a specified time period longer than one year. It smoothens out volatility and shows a steady annual return. Formula: CAGR = (Ending Value / Beginning Value)^(1/years) - 1.
Can you give an example of CAGR (Compound Annual Growth Rate)?
₹1 lakh invested growing to ₹3 lakh in 10 years has CAGR of 11.61% — this is the effective annual growth rate, smoothing out yearly fluctuations.
What is CAGR (Compound Annual Growth Rate) meaning in Hindi?
In Hindi, CAGR (Compound Annual Growth Rate) is called CAGR (चक्रवृद्धि वार्षिक वृद्धि दर). CAGR एक वर्ष से अधिक की अवधि में निवेश की औसत वार्षिक वृद्धि दर मापता है।