IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

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Return on investment (ROI) and internal rate of return (IRR) are two important metrics used in evaluating investments. However, each metric is calculated differently and tells a different story. ROI ...

Forbes contributors publish independent expert analyses and insights. Bernie Kent, J.D., CPA, PFS covers taxes and investments. This article is more than 3 years old. Time weighted rate of return and ...