FREE RETURNS CALCULATOR
IRR Calculator
Estimate the annual internal rate of return from an initial investment, recurring distributions and exit proceeds.
INDICATIVE RESULT
14.07%Total distributions€9,250,000
Equity multiple1.85x
The annual discount rate that sets equity cash-flow NPV to zero is 14.07%.
Continue in the full model.
Move from this screening result to the free Real Estate DCF Valuation Model.
Download free modelFORMULA
How the irr calculation works
IRR is the annual discount rate that makes the net present value of all equity cash flows equal to zero.
Example calculation
Invest €5.0m, receive €250k at each year-end and €8.0m of net sale proceeds in year five. The calculator solves the annual discount rate for those cash flows.
INVESTMENT USE
How professionals use the result
Use IRR to compare investments with different cash-flow timing. Always read it alongside equity multiple, peak equity, leverage and downside loss.
Common mistakes
- Treating an annual result as a monthly rate
- Ignoring interim capital calls
- Using gross sale value rather than net equity proceeds
- Comparing IRRs with different risk or leverage
CLEAR ANSWERS