IRR is important
I wrote an article on this blog before, “Investors should care annualized rate of return (IRR), How to calculate?“, which has repeatedly emphasized that investors should pay attention to annualized return on investment (aka Internal return rate: IRR); I will not repeat the content here.
What the only performance return indicator all investors should care about is their career IRR. Therefore, it is really necessary to design a simple and general IRR calculator.
Why design this calculator?
But for the average person, the IRR calculation is difficult to see at a glance or by mental arithmetic. The more commonly used calculation is to use Excel or Google sheet, or to search for calculation formulas on the internet.
Since the IRR calculation is too important, I decided to develop one and put it on my website for readers who need it.
How to use this calculator?
By clicking on this link, users can connect to IRR calculator and see the following screen:
The user only needs to enter the following three fields of information on the screen:
- Innitial balance: For example, in the example in the screen, we enter 100
- Ending balance: For example, in the example in the screen, we enter 200
- Years Invested: For example, in the example in the screen, we enter 5
After the input is completed, click the “Calculate” button on the screen, and you can see the calculation result in the “Calculate Result” area below.
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