CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady rate annually. It smooths out the volatility of year-to-year returns to give you a single, comparable growth rate. CAGR is the most commonly used metric for comparing investment performance, revenue growth, or any metric that compounds over time. This guide explains what CAGR means, how to calculate it, and when to use it versus other growth measures.