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

More terms

Accounting standards

The rules a company follows when preparing financial statements.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Total Return

This is the measurement of a fund’s performance in a specific period.

Bond

Learn what a bond is

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

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Internal Rate of Return (IRR)