glossary
XIRR
An annualised return calculated from cashflows on their actual dates.
XIRR estimates an annualised rate that balances dated cash invested and cash returned. Unlike a simple percentage gain, it accounts for when each cashflow occurred.
A meaningful calculation requires both positive and negative cashflows. Some cashflow patterns can produce no solution or more than one plausible rate. Results depend on the dates, valuations and cashflows entered.
PropertyFlow uses dated investment cashflows for return reporting. XIRR is a historical calculation, not a promise of future performance.