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Internal Rate of Return (IRR) is a measure of performance commonly used in connection with marketing private placements of real estate, private equity and venture capital. IRR shows a return earned by investors over a particular period, calculated on the basis of cash flows to and from investors ( i.e., the percentage rate earned on each dollar ...

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Internal rate of return (IRR) vs. return on investment (ROI) Internal rate of return and return on investment stop being equal after Year 1. Keeping in mind that interest does not compound on Yieldstreet individual investments, in Year 2, the total value of this hypothetical investment is $11,000 + ($10,000 x 10%) = $12,000.

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