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.

Ryan Eichler holds a B.S.B.A with a concentration in Finance from Boston University. He has held positions in, and has deep experience with, expense auditing, personal finance, real estate, as well as ...

ROI is an important measure of an investment's performance but it has some drawbacks. Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a ...