The internal rate of return (IRR) measures the return of a potential investment while excluding external factors. IRR helps investors estimate how profitable an investment is likely to be. All ...

The rate of return measures how much a given portfolio or asset has changed in value over time. For example, if you invest $1 and have $1.10 a month later, your rate of return is 10%.

For example, if an IRR is 3% and current Treasury rates are 4%, then it might not make sense to go ahead with the investment, because your money could be better served by simply putting it into ...

However, CAGR calculates the mean annual growth rate of investment for a specific period of time, while XIRR measures return on investments with irregular cash flows on different dates.