What is the internal rate of return (IRR)? This article explains the concept of IRR, how to calculate it, why it’s used and its importance.

Where CAGR acts as a mean rate of return for an investment that’s likely to fluctuate over time, it’s calculated when you know the end total. With IRR, you’re working to determine the discount rate ...

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.