[Glossary](https://useratio.app/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% |

## Related

[Net present value](https://useratio.app/glossary/npv) · [Loan calculator](https://useratio.app/loan-calculator) · [All terms](https://useratio.app/glossary)

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Source: https://useratio.app/glossary/irr