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Zak Thompson's profile image
Zak Thompson's profile image
Zak Thompson
  • from Michigan
  • Member since Apr 5, 2020

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Zak Thompson's profile image
Zak Thompson's profile image
Zak Thompson
  • from Michigan
  • Member since Apr 5, 2020
Zak Thompson
  • Michigan
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Commercial Real Estate Investing

Monthly vs Annual IRR Calculation

Zak Thompson
  • Michigan
Posted

Hello, my project is calculating a monthly irr = 13.87% and an annual irr = 14.77%. Shouldn't these numbers equal? 

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Greg Dickerson's profile image
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Greg Dickerson

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Greg Dickerson
Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
Replied
Originally posted by @Zak Thompson:

Hello, my project is calculating a monthly irr = 13.87% and an annual irr = 14.77%. Shouldn't these numbers equal? 

IRR is return on investment over time. Its annualized not monthly calculation.

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