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IRR

Definition

Internal Rate of Return. The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity. also called dollar-weighted rate of return.

Featured Tip

Using IRR to Determine When to SellOne lesson learned after enduring a few too many round trips is to take more of an IRR [internal rate of return] focus on when to sell â what is the return potential from today, not âIâm holding ... Read more

Additional Tip(s)

Allocating a Portfolio Based on Estimated Risk-Adjusted IRR

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Nearby Terms

Irish Stock Exchange (ISE)
iron butterfly
iron condor
ironclad
ironclad agreement
IRR
irrational call option
irrational exuberance
irredeemable bond
irregular
irregular coupon

Popular 'Accounting' Terms

current ratio
equity
working capital
asset
EBITDA
revenue
net income
negotiable
net profit
net worth

Related Terms

modified internal rate of return (MIRR)
incremental internal rate of return
basic IRR rule
pooled internal rate of return (PIRR)
net internal rate of return (net IRR)

Mentioned in these terms

irrational call option
irrational exuberance
irregular
irrevocable income-only trust (IIOT)
Miller and Modigliani's Irrelevance Proposition
confirmed irrevocable letter of credit
irredeemable bond
dividend irrelevance theory
irregular coupon
irrelevance result

IRR