CAGR , or Compound Annual Growth Rate, measures investment growth annually over time, offering a realistic view of returns and performance. Know more about what is CAGR in mutual fund. Compound annual growth rate (CAGR ) is a financial investment calculation that measures the percentage an investment increases or decreases year over year. In simple terms, the Compound yearly Growth Rate (CAGR) is a metric that describes the average yearly growth rate of an investment over a given period, presuming that the investment expands or decreases at a constant pace each year. That’s where CAGR (Compound Annual Growth Rate) comes in. Compound Annual Growth Rate means the average yearly growth of an investment. It is calculated using the compounding formula and shows how your returns build upon themselves over time.

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