What is 'Internal Rate of Return (IRR)'? Definition & meaning

More terms

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Bull market

We explain what a 'bull market' means

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

Internal Rate of Return (IRR)