Return on investment (ROI) and internal rate of return (IRR) are two important metrics used in evaluating investments. However, each metric is calculated differently and tells a different story ...

Internal Rate of Return (IRR) is a formula used to evaluate the returns of a potential investment. IRR calculates the projected annual growth rate of a specific investment over time.

In order to make educated decisions when investing, you need to determine how much you could make on that investment. To do this, you need to calculate return on investment, or ROI.

To truly calculate the total return of an investment, you must include the CGY or CGL and dividend yield. Many brokerages will provide the CGY and total return on investment for the stocks you hold.

The growth rate of an investment shows how much its value increases over time, helping to evaluate performance. A common way to calculate this is by using the compound annual growth rate (CAGR ...

Investors use rate of return to understand the earnings or losses on an investment in a specified period of time. Learn more about how it’s calculated.

Extended internal rate of return, or XIRR, is a financial metric used to calculate return on investments where multiple ...

To calculate the internal rate of return, you’ll need to know your expected cash flows for a given period. ... you might decide it’s a good investment. What Is Internal Rate of Return Used For?