Investments
CAGR
pronounced: [C-A-G-R]
Compound Annual Growth Rate measures the mean annual growth rate of an investment over a specified period longer than one year, accounting for compounding effects.
Example
₹1 lakh invested at 12% p.a. compound interest grows to ₹3.1 lakh in 10 years, ₹9.6 lakh in 20 years, and ₹29.7 lakh in 30 years. Simple interest at the same rate would only be ₹2.2 lakh, ₹4.4 lakh, and ₹6.6 lakh over the same periods.
Frequently Asked Questions
Last updated: 21 May 2026