Internal Rate of Return (IRR) (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

The annualized rate of return on an investment, helping you gauge its profitability over time.

What to consider

Understand that even a small rate difference can affect you over time.
Monitor rates when shopping for loans or credit cards.
Revisit your current rates periodically to see if a change is possible.

Real world scenarios

When evaluating a potential project, Kevin calculated the internal rate of return (IRR) to see if the investment would yield a satisfactory profit over time.

Related terms

Investments & Retirement

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