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IRR Calculator

Calculate internal rate of return on potential investments. Input initial equity, hold period cash flows, and exit value.

$

Your equity contribution at closing

Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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Leave blank or enter 0 for no cash flow

$

Estimated equity return at sale (after debt payoff)

Understanding IRR

IRR represents the annualized rate of return that makes the NPV of all cash flows equal to zero. It accounts for the time value of money and timing of cash flows.

Target IRR Benchmarks

Core6-9%
Core-Plus9-12%
Value-Add12-18%
Opportunistic18%+

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