# Which relation stands between IRR and the cumulative profits?

In the graph below you can see an irregular Cash Flow.

The graph is cumulative, on the y axes there are moneys, on the x the dates.


In the second graph the IRR (calculated from the beginning to the last day x). I was expecting the IRR to be correlated to the discrete derivative of the first graph, but I was wrong.

Can you help me to understand the relationship between the two curves?

• What happened to this comment: "How do you compute IRR? To me IRR is $\frac{W(t)}{W(0)}-1$ which will look similar to your graph " – Revious Aug 29 '20 at 16:35