What is IRR (Internal Rate of Return)?
Simply put, IRR (Internal Rate of Return), measures how profitable an investment is. A higher IRR means a better investment
IRR, or Internal Rate of Return, is a financial metric that helps measure how profitable an investment is. It represents the percentage return an investment is expected to earn over time. The IRR is the rate at which the total money coming in (cash inflows) equals the total money going out (cash outflows), meaning the investment breaks even.
A higher IRR generally means a better investment, as it indicates a higher potential return. Businesses and investors use IRR to compare different projects, decide where to invest, and plan for growth.
Use this IRR calculator to quickly check returns—just enter initial investment, time period of investment and total return, and it does the math for you. By using IRR calculator, you can evaluate risk, compare opportunities, and make confident financial choices for long-term success.