IRR Calculator
Calculate internal rate of return and equity multiples with custom multi-year cash-flow projections.
Frequently asked questions
What is IRR in real estate and private equity?
Internal Rate of Return is the annualized discount rate that makes the net present value of all cash flows equal zero. It captures both the magnitude and timing of returns — a deal that returns $2M in year 3 has a higher IRR than one returning $2M in year 7.
What is a good IRR?
Institutional targets vary by strategy: 6-10% for core, 10-14% for core-plus, 13-18% for value-add, and 18%+ for opportunistic. IRR alone is insufficient — always pair it with equity multiple to avoid rewarding short-hold flips with modest total profit.
What is the difference between IRR and equity multiple?
Equity multiple is total cash returned divided by cash invested (a 2.0x multiple means you doubled your money). IRR is that multiple annualized over the hold period. A 2.0x over 3 years produces a higher IRR than a 2.0x over 7 years, but the total profit is identical.