Internal Rate of Return
Definition
- That rate at which the current worth of all present and future investment costs equals the current worth of all present and future investment benefits.
Synonyms
economic rate of return
Acronyms
IRR
Related Terms and Acronyms
- Capitalization Rate — Definition,
- An estimated percentage rate of return that a property will produce on the owner's investment.
- Economic Internal Rate of Return (EIRR) — Acronym,
- Expected Internal Rate of Return (EIRR) — Acronym,
- Financial Internal Rate of Return (FIRR) — Acronym,
- Investment — Definition,
- Something you put your money into in order to make money.
- Modified Internal Rate of Return (MIRR) — Acronym,
- Mutual Fund — Definition,
- A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
- Rate of Return (RR, ROR) — Acronym, Important,
- The profit an investment generates, expressed as equity divided by cash flow.
- Return — Definition,
- Any increase in value or in income you earn on purchase or investment.
- Return on Assets (ROA) — Acronym,
- A ratio that shows how profitable a company is when compared to its assets.
- Return on Equity (ROE) — Acronym,
- A ratio that shows how profitable a company is when compared to shareholder equity.
- Return on Investment (ROI) — Acronym, Very Important,
- The profit an investment generates, expressed as equity divided by cash flow.
- Security — Definition,
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- Yield-to-Maturity (YTM) — Acronym,
- The internal rate of return on an investment. Typically takes into account all investment returns and their timing.
