Any experts on how to calculate this? Basically how much is IRR 14% if $1000 is invested? Estimated term is 7 years

Post Photo
Posting as :
works at
You are currently posting as works at

Very common terminology in Alts. I'm not a fund accountant so someone can explain this better. Annual growth rate. Basically tells you the compound interest yearly. So $100 at 5% IRR is 105 first year. 110.25 next, etc. I think it also includes fees though so once you factor in that and other things it's lower payout.


Is it 14% per year?

Exactly what I’m trying to figure out. Lol

I’ll send this to someone better with numbers than I am to see if they can figure it out because I definitely can’t, lol.

Does it mean it takes 7 years to get a 14% gain on $1K invested? I don’t know this stuff

Looks like there’s an excel function that can calculate total return. This table and the formula in the same page seemed helpful.

Post Photo

It's 14% a year for 7 years but the weird thing about IRR is you have to multiply your return after one year (1140) by 14% return until you get to 7 years -- it is compounding.

I am hoping someone who took Finance courses in undergrad or grad school can pitch in but IRR is no longer a good way to evaluate.

I see it used in conjunction with NPV all the time. It's also how PE firms and VCs measure success. They need to show high IRR of previous funds in order to raise new funds.

Related Posts

Just moved to the city and I'm excited to get out and try some new restaurants. What's your all-time favorite spot to grab a bite in Charlotte? (Bonus points if you can tell me what makes it awesome!)


If I do a HDHP next year and contribute to a HSA, what happens to my HSA if I want to go back to a LDHP the following year or a few years later?


That's a fair point.

Post Photo

I am getting my bachelors in economics but I don’t know if I should switch to accounting. I’m also getting a minor in media arts but I’m unsure of how to use these skills?


Is it possible in TCS to change location from Adibatla Hyderabad to Deccan Park Hyderabad @tcs


Always so funny how movies and TV shows represent engineers, sure gives the wrong idea of what we do on a daily basis lol


What should I ask for Java full stack with 1.6 yoe in hcl
Cctc:- 6.5
What should be my Ectc?


How do you ensure that your patients always have non-expired Epi-pens? The cost can be so high!


Which one to join-
Accenture- 11.5 LPA including variable, no JB, Level 10
Mindtree- 12 LPA fixed, no JB, Full stack module lead
PwC- 13 LPA fixed, 1L JB, Senior associate, Emerging Technology vertical
Looking for work-life balance, work culture, job security. I'm ok to work 10-11 hrs in weekdays but 0 work on weekends.
Tech stack- Java, Springboot, Webservices
YoE- 5 years
Please suggest.
Accenture PwC Mindtree


What's the variable percentage for team lead /specialist ?


9 more weeks of lockdown, at least. How are you all holding up? It’s not easy.

How is the situation for MBB firms currenty in Dubai? Is the business picking up? I am thinking of moving to the region from Europe and got offers from BCG, Bain and Kearney. Would be nice to get some insights on the culture and business outlook esp. since COVID. Are there significant differences in terms of the travel policies among these firms. In Europe I know that BCG is quite relaxed, when it comes to their travel policies.


Just needed a place to vent out.Please feel free to ignore.

Its been a really frustrating time for me.After 4 yoe making my first switch was a decision I was excited
for.Got an offer with 40% hike but its is nowhere near what I wanted.I was sure a 90 day np would mean a bouquet of choices.Cut to..

25 days remaining and no offer in hand.A bunch of morale-shattering interviews,some excellent interviews followed by ghosting by recruiters and a boatload of anxiety.

Hoping its a rut and I snap out!


Ashley Graham is sort of like the NBA. No matter how much popular media forces her on me, it just isn't going to happen. Redirect those marketing dollars.


Looking for people knowledgable in graphic design & animation to network with and befriend!


Should I go to the Faroe Islands or the Himalayas next year?

Post Photo

Why is the starting salary for the partnership a secret. I understand it gets complex as you move up in the partner ranks but starting salary should be pretty standard, anyone have insights?


Does anyone use a newsletter like Scott's Cheap Flights, but for international business class travel?


B2 - B4 for BEC in Becker is brutal. (Financial management and cost accounting)


Additional Posts in Tech

Anyone up for going through my resume :)

Looking for a data science internship, please let me know in the comments if your companies have openings.


Post Photo

My boss just told us that we're going to have to focus over the next few months to finish a project, but it's the nearing the holiday season and I wanted to relax and spend time with my family. Should I take my vacation nonetheless?


Thoughts on Netflix culture?


Which companies pays more than $300k to Product Managers with no-CS background ?


LinkedIn SalesOps to PM? Is it doable?

Would anyone be willing to share some knights on key metrics /KPIs used at your companies to measure Product Managers / PM function on? I’m at a small tech company (not at Deloitte anymore) and looking for some comparators or perspectives that I can layer into my generic framework for metrics. Thanks!


A friend of mine, a cloud engineer just got another job and got a note saying they are running into over employment issues. What does that even mean? He normally does two cloud jobs at once.


After 2 years at my company (Multi national company with >1k employees) I was promoted to Senior SWE with a 10% salary bump from 85k to 93.5 I live/work in the Baltimore area which I consider Medium COL. Is this a reasonable adjustment for a senior promotion in this area?


Are personal websites good as a substitute for a resume, or should I stick to the traditional one-page paper?


Will the job market be bad for new grads next year?


So I finished my interviews for a software engineering position at Google and it’s been a week and half and my recruiter responded saying she’s been trying to find a potential team alignment, does that mean I passed the interviews and I’ll be offered a position? I’m confused


Like most tech companies, about a year ago my company started hiring remote employees. we all worked remotely for 24 months.

Now that we are reopening our offices, no one seems to be coming into the office yet. I really do not want to work remotely anymore, and I’m seriously considering changing jobs just to go back to a workplace where people are in person.

Is anybody else in this position? I feel like I am losing my mind working from home for two years with no end in sight.


What are everyone’s best productivity tips? Fairly early in my career as a SWE looking to learn :-)


Does Spotify ever hire for Business Analyst roles? I feel like I check all the time but never see any.


What tech can, if you're involved in it now you're considered a pioneer, thats going to become the industry norm in 10 years??


I want to get my foot in the door as a data analyst. I’m good with SQL, tableau and python not an expert yet but I am working on that. Right now I work as an IT technician, any suggestions or advice would helpful.


Do you ever write code in such a way that only you can understand it, for job security?


Any tips for running good team meetings? I have regular weekly team calls with my 4 directs as I want to keep everyone updated on priorities, but it feels like I’m just speaking at them most of the time and the calls lack dialogue. I feel like i could do this via email, however I know it’s important to get everyone together in the virtual world. Any tips to make team meeting more engaging?


Hi! I am looking for advice on the rate per hour for contractor salaries. Is there a website for this?

Also, any hints on the rate per hour for specialized work: UX research for AR/VR? Thanks!


New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here


Embed this post

Copy and paste embed code on your site


Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone


Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or