Estimate the internal rate of return on a commercial real estate investment based on your initial equity investment, annual cash flows, and net sale proceeds at exit.
The cash invested at the beginning of the deal. This is treated as the Year 0 cash outflow.
The number of years you expect to hold the property before sale or recapitalization.
Used to populate the yearly cash flow table. You can edit each year separately after generating the rows.
Used only to estimate NPV. This does not change the IRR calculation.
Exit Assumptions
The expected sale price or exit value at the end of the holding period.
Estimated sale costs as a percentage of sale price.
Loan payoff or debt balance that must be repaid at sale.
Optional additional closing costs, reserves, or adjustments deducted from sale proceeds.
Annual Cash Flows
Year
Annual Cash Flow After Debt Service
Notes
IRR Calculator Results
Estimated IRR
—
Annualized internal rate of return based on the timing of investment cash flows.
Equity Multiple
—
Total distributions divided by the initial equity investment.
Total Profit
—
Total cash received minus the initial equity investment.
Net Sale Proceeds
—
Sale price after selling costs, loan payoff, and other exit costs.
NPV
—
Net present value using the optional discount rate entered above.
Average Annual Cash Yield
—
Average annual cash flow divided by the initial equity investment.