**Extended Internal Rate of Return - XIRR **

XIRR or extended internal rate of return is a measure of return that is used when multiple investments have been made at different points of time in a financial instrument like P2P lending. It is a single rate of return when applied to all transactions would give the current rate of return.

You can't depend on a simple interest rate return in a situation where multiple withdrawals and investments occur over a period of time. In a situation like this, months are often skipped. So to get a more accurate picture of your return, XIRR is used.

**Net Returns on Investment**

Return on investment, or ROI, is the most common profitability ratio. There are several ways to determine ROI, but the most frequently used method is to divide net returns by total cost of investment(total money added).

It is a mathematical formula that investors can use to evaluate their investments and judge how well a particular investment has performed.