𝗜𝗥𝗥 𝘃𝘀 𝗥𝗢𝗜: 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗞𝗲𝘆 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀

Ever caught yourself using ROI when IRR would’ve told you a whole different story?

I see this all the time in financial modeling and investment discussions. Both ROI and IRR are useful—but not interchangeable.

💡 ROI gives you a snapshot. Simple. Fast. But it ignores when the returns happen.

💡 IRR digs deeper—it respects time. Cash flow timing, compounding, annualized rates… the stuff that actually matters when you’re betting on the long game.

I’m a fan of choosing the right tool for the right context—not just the most familiar one.