XIRR (Extended Internal Rate of Return)

XIRR is a financial formula that accounts for the timing of every cash flow—deposits, withdrawals, and distributions—so you see an accurate annualized rate (APR) for your portfolio.

How does XIRR work?

Unlike standard IRR, which assumes evenly spaced transactions, XIRR supports irregular schedules. That matches reality: investments and payouts rarely happen at fixed intervals.

XIRR factors in:

• the amount of each cash flow (deposit, withdrawal, distribution, etc.);

• the exact date of each cash flow;

• your ending balance/valuation on the calculation date.

By combining size + timing, XIRR gives a realistic view of performance.

How we calculate your APR on Scramble

Your APR is computed with the XIRR formula using:

• all deposits and withdrawals to date,

• your current balance (cash plus any bonuses),

• future distributions projected from the repayment schedules under the Financing agreements (principal and earnings) for your assigned Claims.

The result is a consistent annualized return you can compare across opportunities.

Why XIRR matters

• Tracks growth over time with time-weighted precision.

• Reflects the impact of irregular cash flows.

• Helps you compare returns across rounds, groups, and strategies.

FAQ

What is XIRR in investments?
XIRR is a method for calculating returns when cash flows (deposits/withdrawals/distributions) occur at irregular intervals, adjusting for their timing.

How is XIRR calculated?
In Excel or Google Sheets:
=XIRR(values, dates, [guess])
Where values are the cash flows (negative for deposits, positive for withdrawals/distributions and ending value) and dates are their timestamps.

What’s the difference between XIRR and Absolute Return?
XIRR is annualized and time-aware. Absolute Return is the total percentage change over a period without annualizing or considering timing.

What is a “good” XIRR?
It depends on the asset’s risk profile and horizon. On Scramble, compare your APR to our group targets (e.g., Group A up to 12.4% target annual return; Group B up to 25%) and your own risk/return preferences.