# IRR (Internal Rate of Return)

*Saving & Investing — Finicade finance glossary*

The discount rate at which a project's NPV is exactly zero — effectively its built-in annualised return. Compare it to your cost of capital: above it, the project pays; below, it doesn't.

**Also known as:** internal rate of return

**Related terms:** [NPV (Net Present Value)](https://finicade.com/glossary/npv), [WACC](https://finicade.com/glossary/wacc), [Capital Budgeting](https://finicade.com/glossary/capital-budgeting)

**Taught in:** Capital Quarters — IRR & Payback

Source: https://finicade.com/glossary/irr