> For the complete documentation index, see [llms.txt](https://ditto-6.gitbook.io/kibble/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ditto-6.gitbook.io/kibble/kibble-farm/internal-rate-of-return-irr.md).

# Internal Rate of Return (IRR)

**What does the IRR metric on the Vault page represent?**&#x20;

IRR stands for Internal Rate of Return which is [defined on Investopedia ](https://www.investopedia.com/terms/i/irr.asp)as the profitability of potential investments. In vault system, the IRR provides a representation of the performance of the vault from inception (meaning an account of its past performance).&#x20;

IRR is a holistic measure that gauges the overall profitability of a Vault. It is important to note, however, that IRR is denominated in deposit asset terms. Meaning if you deposit 1 ETH and now have 1.10 ETH worth of tokens in your position, the IRR is 10%.&#x20;