What is the internal rate of return (IRR)? This article explains the concept of IRR, how to calculate it, why it’s used and its importance.

The risk-free rate of return is the theoretical rate of return of an investment with zero risk. Learn how it works and what it means for investors.

Rates of return on target-date funds vary from company to company but these one-fund allocations offer a hands-off approach to asset allocation within a 401(k). $131,700.

An average rate of return can mask losses over time, so what investors really want to keep an eye on is the actual rate of return, financial adviser Carlos Dias Jr. says.

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...

For example, say you invest in a fund that historically provides an 8% nominal rate of return. However, the fund has a 0.5% management fee, and inflation is 3%.Therefore, you subtract 3.5% of the ...

Assuming that the risk free rate is 5% with an inflation of 3%, then the risk free rate of return calculation will be as follows – Nominal rf Rate = (1+ 5%) (1+3%) – 1 which would give 8.2%.

Factors That Determine Your Rate of Return in Retirement. Your rate of return is also subject to factors beyond taxes, fees, ...

The average rate of return on a 401(k) ranges from 5% to 8%. However, the typical 401(k) holds a mix of roughly 60% stocks and 40% bonds, so it’s also subject to the whims of the larger marketplace.

Here’s How a Hypothetical 25% Rate of Return Doesn’t Equal Money. Meet Tom and Debbie. They have $100,000 to invest and have a timeline of four years.

It’s not complicated to calculate the annual return rate for a 401(k). All you need is the formula, some data from your account and a calculator or pen and paper. First, you’ll want to look at ...

Rate of Return % = [(Current Value – Initial Value) / Initial Value] x 100. Rate of Return Example. For example, if a share price was initially $100 and then increased to a current value of $130 ...