IRR (Internal Rate of Return)
The annualized return that makes an investment’s cash flows break even in present-value terms.
What does irr mean?
IRR accounts for the timing of money in and out, not just the totals — cash received sooner is worth more. It’s the standard yardstick for comparing investments and projects with different cash-flow patterns.
Put it to use
Internal Rate of Return (IRR) Calculator Use this calculator to determine an Internal Rate of Return (IRR). It calculates the IRR on an annual basis of an irregular stream of up to 20 payments and withdrawals. Investment Property Calculator An investment property can be an excellent investment. This calculator is designed to examine the potential return you might receive from an investment property.
Related terms
All glossary terms