Irr formula: Internal Rate of Return (IRR) shows

Internal Rate of Return (IRR) shows how much profit you can expect from an investment. Learn its formula, example and limitations. Internal rate of return (IRR) is the minimum discount rate that management uses to identify what capital investments or future projects will yield an acceptable return and be worth pursuing. Oct 17, 2025 · The internal rate of return (IRR) is a metric used in capital budgeting to estimate the return of potential investments. Here is the formula for calculating it. Internal Rate of Return is the annual rate at which an investment grows. Learn the IRR formula, how to calculate IRR, and how to use it to evaluate investments.