Use our IRR Calculator to analyze real estate investment performance. Calculate internal rate of return, equity multiple, and total cash flow yield.
Understanding your property’s return over time is essential for long-term success. The IRR Calculator from REIF Loans helps investors evaluate total investment performance by calculating Internal Rate of Return (IRR), cash flow timing, and equity multiple.
Whether you’re analyzing a single rental or comparing multi-year investment opportunities, this calculator gives you clear insight into your total return potential.
The Internal Rate of Return (IRR) measures the annualized rate of return a property generates, accounting for both the timing and magnitude of cash flows. It’s one of the most powerful tools investors use to compare deals.
IRR Formula (Simplified):
IRR = The discount rate that makes the Net Present Value (NPV) of all cash flows equal zero.
In practical terms, it’s the interest rate at which:
Total Present Value of Cash Inflows = Total Present Value of Cash Outflows
Example:
If you invest $100,000 and receive $25,000 per year for 5 years, your IRR is roughly 15%, showing how efficiently your money is growing annually.
Calculate the Internal Rate of Return (IRR) and Equity Multiple for your real estate investment. Add your initial investment, annual cash flows, and final sale value.
Our IRR Calculator allows you to enter your initial investment and cash inflows over several years to determine your Internal Rate of Return, Equity Multiple, and Total Profit.
IRR helps you measure true investment performance beyond simple cash-on-cash returns. It accounts for the time value of money, meaning cash received earlier is worth more than cash received later.
In short, IRR helps you see the complete picture of profitability and risk-adjusted return.
While IRR measures annualized performance, the Equity Multiple shows how much total cash you received compared to what you invested.
Equity Multiple Formula:
Equity Multiple = Total Cash Inflows / Initial Investment
Example:
If you invest $100,000 and receive $180,000 total, your equity multiple is 1.8x and you earn an overall profit of 80%.
Together, IRR and Equity Multiple reveal both efficiency and scale of your investment performance.
Different investors have different return targets depending on risk, property type, and financing strategy.
REIF Loans helps investors evaluate performance against goals, capital structure, and market conditions.
ROI measures total percentage return, while IRR factors in timing and cash flow distribution.
Yes. You can enter fractional years or monthly cash flow for more precision.
You can include them in your cash flow inputs to calculate leveraged returns.
Most investors target 12%–18%, depending on asset type and risk level.
Yes. Run separate calculations and compare IRR and equity multiples side-by-side.
Ready to measure your property’s full potential? Use our IRR Calculator to evaluate deal performance, compare opportunities, and make confident, data-driven investment decisions.
