IRR and XIRR [Different Results, Same Cash Flow?]

In this video I explain why your XIRR and IRR values come out differently when you are applying them in the same financial model.

Either the XIRR (extended internal rate of return) or IRR (internal rate of return) function is used to calculate the IRR, which is a fundamental return metric to understanding the value of almost any real estate investment. It's important to understand what they mean and why they are different on the margin.

We will discuss conceptually why these functions provide different results and then we will walk you through the formulas that excel uses to iterate through and return the result.

If you visit the post on our website, you can download the template use in the video to follow along. You can do so here: https://www.adventuresincre.com/why-y...

For more great content and free tutorials on real estate financial modeling and so much more, please visit www.AdventuresInCRE.com.