Glossary › Money and tax
Internal rate of return (IRR)
The discount rate at which the net present value of a series of cash flows is zero.
Put the money you spend as a negative number first, then the money you get back. IRR is the yearly return that investment earned. Compare it with the rate you could get elsewhere.
Ratio gives it as a percentage.
In Ratio
| You type | Ratio shows |
|---|---|
irr(-1000, 300, 400, 500) | 8.8963% |