IRR (Internal Rate of Return)
InvestingThe discount rate that makes the net present value of all cash flows equal to zero — a measure of investment efficiency.
Example
Example: Consider an investor building a $100,000 portfolio. IRR (Internal Rate of Return) — the discount rate that makes the net present value of all cash flows equal to zero — a — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.