Words / I / Business

internal rate of return

noun

B1CEFR level
35/100Rarity: fairly common
TechnicalRegister

The discount rate at which an investment's net present value equals zero, expressing its annualised return.

The fund targets an internal rate of return of at least twenty per cent on each deal.

Similar: IRR

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance