Monthly vs Annual IRR Calculation

[Zak Thompson]

Hello, my project is calculating a monthly irr = 13.87% and an annual irr = 14.77%. Can someone tell me if these two should equal the same value?

[Greg Scott]

The math is as follows

13.87% annualized monthly rate is  .1387/12 = .0011558 or 1.1558% per month

The formula for compounding this monthly rate over 12 months is 1.011558 to the 12th power or 1.14786 which is 14.79% annually (with a rounding error)