CAGR: one number for a multi-year path
Compound annual growth rate compresses a journey from start value to end value into a single annualised rate. Investors use it to compare funds, businesses, or personal accounts across different time lengths without staring only at cumulative percentages.
Use carefully
CAGR hides drawdowns. Two paths can share a CAGR while one was a calm climb and the other a roller coaster. Pair with ROI and risk tools when behaviour during volatility matters. Results are educational estimates, not performance guarantees.