What the calculation measures
CAGR answers: what constant annual compounded rate would turn the start value into the end value over this period?
How to interpret the result
It smooths volatility, so compare it with actual year-by-year results when variability matters.
Run scenarios instead of one answer
Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.
Limits and assumptions
CAGR is not appropriate when the start value is zero/negative or when interim cash flows materially affect performance.