CAGR Formula
CAGR = (Ending Value / Beginning Value)1/n – 1 where n = number of years. Multiply by 100 for percentage.
Example: ₹1,00,000 grew to ₹2,50,000 in 5 years → CAGR = (2.5)0.2 – 1 = 20.11%.
CAGR is widely used to compare performance of mutual funds, stocks, businesses, and economies. It removes annual volatility to show "what if" steady annual growth.