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.

Bed & ISA

Understand what Bed and ISA is and how it works

Wall Street

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

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.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Securities

Bonds and stocks.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Internal Rate of Return (IRR)