The Internal Rate of Return formula references a technique for evaluating capital investments. This function enables you to calculate interest earned on an investment by converting all cash flows ...

What is Internal Rate of Return (IRR) and how can this formula help you gain the best return on investment for the future?

Internal rate of return (IRR) is one of several well-known formulas used to evaluate prospective investments, especially ones that generate cash flows, like in real estate.

Projected Return on Invested Money The internal rate of return, or IRR, is the interest rate that provides a net present value, or NPV, of future cash flows equal to the initial investment amount.

Investors use rate of return to understand the earnings or losses on an investment in a specified period of time. Learn more about how it’s calculated.

What is XIRR in Mutual Fund XIRR, or extended internal rate of return, is a financial metric used to calculate the annualized rate of return for investments with irregular cash flows. Unlike ...