Internal rate of return (or IRR) is defined as the discount rate that makes the present value of the future after-tax cash flows equal to investment outlay, made initially, by assuming that profit ...

Looking forward when you are investing can be tricky. The future is never certain, and you might not always know every variable affecting your investments. Still, there’s a lot to gain by ...

Linda Grayson has 20+ years of experience in proprietary trading and index futures. She began writing for Investopedia in 2018. David Kindness is a Certified Public Accountant (CPA) and an expert in ...

The internal rate of return (IRR) is the return on an investment. That is, it is the percentage profit or loss that an investment will make for the amounts that have not been withdrawn from the ...

Excel has a built-in IRR function that simplifies calculations significantly. To use it, type =IRR (values,guess) into an empty cell. ‘Values’ refers to your cash flow data range and ‘guess’ is an ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...