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Real Estate IRR Calculator

The Internal Rate of Return (IRR) is the compound annual return on a real estate investment accounting for all cash inflows (income, refinance proceeds, sale) and outflows (purchase, capital expenditures, loan payments). Unlike cash-on-cash return, IRR incorporates the time value of money and the exit.

Institutional investors typically target 12–18% IRR for value-add CRE. Core-plus assets in gateway markets often clear 8–11%. A deal at 20%+ IRR is exceptional — verify the assumptions before getting excited. IRR is sensitive to hold period and exit cap rate, so always stress-test both. Enter your equity investment, annual cash flows, and projected sale proceeds below.

IRR Calculator

Initial Equity Investment ($)

Annual Cash Flow ($)

Exit Value / Sale Price ($)

Remaining Loan Balance at Sale ($)

Hold Period (years)

Sale Closing Costs (%)

IRR—

Equity Multiple—

Net Sale Proceeds—

IRR benchmarks by strategy

20%+ — Exceptional

Opportunistic or value-add with significant execution. Rare at scale.

15–20% — Strong

Value-add multifamily, well-executed fix & flip, net lease with upside.

12–15% — Acceptable

Core-plus multifamily, stabilized retail, light value-add.

Below 10% — Reconsider

Core deals in gateway markets. May work for wealth preservation, not growth.

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REDealIQ computes levered IRR with full proforma, sensitivity analysis, and exit scenario modeling. Drop in your T-12 or rent roll to auto-populate fields.

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