Calculators › IRR Calculator
Deal analysisInternal rate of return is the most complete return metric, because it accounts for every year's cash flow and the sale, weighted by when the money arrives. Enter the deal below and see your IRR alongside the equity multiple, so one number never tells the story alone. It updates as you type.
Your investment
Down payment, closing costs, and any immediate repairs.
Sale price minus loan payoff and selling costs.
If the count matches your holding period, these override the Year-1 and growth fields. The sale proceeds are still added to the final year.
Enter your cash invested and a holding period to see the IRR.
These inputs never turn a profit, so there is no positive rate of return to solve for. The equity multiple and total profit still describe the outcome.
An estimate that is only as good as your projections. It assumes cash flows arrive at year-end. Pair IRR with the equity multiple and cash-on-cash before deciding. Not financial advice.
IRR is the single annual rate that makes the present value of all your cash flows equal to zero, in plain terms, the effective yearly return on the money you had at risk. It is more complete than cash-on-cash or cap rate because it weighs the timing of every dollar. But it is not a forecast of your bank balance, and a high IRR over a short hold can mean less total profit than a lower IRR over a long one. That is exactly why the equity multiple sits next to it here: the multiple tells you how many times your money came back, the IRR tells you how fast.
Put in $60,000, collect about $6,000 in year one growing 3% a year, and net $90,000 when you sell in year five. Your money more than doubles, an equity multiple around 2.0, and the IRR lands in the high teens. Push the sale further out with the same profit and the IRR falls, because the same gain took longer to earn.
Cash-on-cash is a single year's cash flow over your equity, and cap rate is one year's unlevered yield. IRR spans the whole hold, including the sale, and accounts for timing, which the other two ignore. See cash-on-cash vs cap rate vs ROI.
Annual IRR treats each year's cash as arriving at year-end, which is the standard simplification. Real timing is monthly and slightly improves the true return, so treat this as a close estimate.
Because IRR rewards speed and can flatter a quick flip, while the multiple shows total return. A 2x in three years and a 2x in ten years have very different IRRs but the same multiple. Reading them together keeps you honest.
It depends on the strategy and risk. Stabilized rentals often pencil in the low teens; higher-risk value-add deals target more. There is no universal number, so compare against your own alternatives.
Ready Utilities was founded by Cedrick Reese, a retired veteran and web developer who enjoys building free, user-friendly online tools that simplify everyday tasks. My journey began in the early 2000s with affiliate marketing and niche site development, which grew into a passion for creating practical digital utilities and calculators. After retiring, I earned a Computer Systems Technician certificate from UEI College, completed Electro-Mechanical Technologies at Tulsa Welding School, and finished the Carpentry program at Florida State College at Jacksonville. Today, I combine my technical background and craftsmanship by building furniture using traditional woodworking methods, gardening, and developing helpful online tools for users worldwide.