What is the internal rate of return (IRR)? This article explains the concept of IRR, how to calculate it, why it’s used and its importance.

NPV is essential to corporate budgeting. Excel can find the internal rate of return (IRR) and use that as the discount rate for an NPV of zero.

Internal rate of return (IRR) is one of several well-known formulas used to evaluate prospective investments, especially ones that generate cash flows, like in real estate.