Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Thomas J Catalano is a CFP and Registered Investment Adviser ...

The internal rate of return, or IRR, is the interest rate that provides a net present value, or NPV, of future cash flows equal to the initial investment amount. Flip that definition around, and the ...

When it comes to calculating interest rates for investments and bonds, the Yield and IRR formulas in Excel can quickly become your friends. Whether you're considering buying a bond or investing in a ...

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

IRR calculates the return rate at which a project's net value totals zero. Using Excel's XIRR, FoolCo finds buying new machinery earns a higher IRR of 26.5%. IRR considerations exclude cash flow ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...