Property IRR Calculator
Property hold period पर levered IRR + cash-on-cash + equity multiple compute करें। Year-0 down payment, year-by-year cash flows, exit sale proceeds।
Levered IRR is very sensitive to the exit cap rate assumption. Test multiple exit caps to see the range of plausible outcomes. Pre-tax model — does not adjust for depreciation recapture or capital gains tax.
🏠 Acquisition
💳 Financing
📈 Operating + Exit assumptions
Property IRR क्या है?
Internal Rate of Return वह discount rate है जो project के cash flows के net present value को zero बनाता है। Real estate में: "जो equity मैंने आज put की है, मुझे जो yearly cash flow मिलता है, और selling पर जो net proceeds आते हैं — मुझे क्या annualized compound return मिल रहा है?" Real estate analysis में सबसे rigorous single yardstick।
Model कैसे काम करता है
- Year 0: invested equity (down payment + closing costs), negative।
- Years 1 to N-1: NOI − debt service।
- Year N (sale): annual cash flow + sale net proceeds।
Exit value question
Appreciation-only (exit cap = 0) या exit cap rate: NOI year N+1 ÷ exit cap rate। Conservative convention: exit cap = entry cap + 50bps।
Typical IRR ranges
- 5–10%: Core/stabilised, low leverage।
- 10–15%: Core-plus / moderate leverage।
- 15–20%: Value-add।
- 20%+: Opportunistic / development।
Common pitfalls
- Optimistic exit cap पर anchor करना।
- NOI growth में perfect occupancy assume करना।
- CapEx model नहीं करना।
- IRR को total return जैसा misread करना।
- Pre-tax model — depreciation और capital gains tax नहीं।
साथ pairs
- cap-rate, noi-calculator, mortgage-affordability-calculator, rental-yield।