FREE RETURNS CALCULATOR
Unleveraged IRR Calculator
Calculate the property-level return before financing from total cost, operating cash flow and sale proceeds.
INDICATIVE RESULT
10.55%Total distributions€15,750,000
Equity multiple1.57x
The annual discount rate that sets equity cash-flow NPV to zero is 10.55%.
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How the unleveraged irr calculation works
Unleveraged IRR solves NPV = 0 using project cash flows before loan draws, interest and principal repayment.
Example calculation
Pay €10.0m for an asset, receive €650k of annual net cash flow and sell for €12.5m after five years.
INVESTMENT USE
How professionals use the result
Use unleveraged IRR to compare underlying property economics without capital-structure differences.
Common mistakes
- Including loan proceeds
- Using NOI before recurring capex when cash flow is after capex
- Ignoring selling costs
- Comparing different hold periods without context
CLEAR ANSWERS