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Real Estate IRR Calculator

IRR helps you understand the full life of the deal, not just year one.

Internal rate of return matters when timing, sale assumptions, refinance plans, and multi-year cash flows affect decision quality. Dealarc helps investors model those moving pieces in one underwriting flow.

Timing matters

IRR accounts for when cash flows happen, not just how much comes back in total.

Exit matters too

Sale proceeds and exit costs often have an outsized effect on IRR, especially for shorter hold periods.

Best for multi-year analysis

IRR is especially useful when comparing value-add, BRRRR, and longer hold strategies across different timelines.

Why investors use IRR

IRR is one of the strongest metrics for comparing deals with different hold periods or uneven cash flow timing. It is not always the easiest number to explain, but it becomes essential once a deal goes beyond simple year-one yield.

IRR is useful for

  • Value-add acquisitions
  • BRRRR strategies with changing cash flow
  • Deals where sale timing matters
  • Comparing multiple exit paths

IRR can mislead when

  • Exit assumptions are too optimistic
  • Users ignore reserves or disposition costs
  • The hold period is unrealistically short
  • There is too much focus on one headline number
A good IRR calculator should make the assumptions visible. Dealarc does that by tying IRR to hold-period cash flows, financing, and exit logic instead of hiding the inputs.

IRR calculator FAQ

What is IRR in real estate?

It is the annualized return implied by all cash flows in the deal, including final sale proceeds and the timing of each return.

Why use IRR instead of cash on cash?

IRR captures multi-year timing and exit effects, while cash on cash is typically focused on yearly yield on equity.

Is IRR sensitive to exit assumptions?

Very. Exit cap rate, sale price, hold period, and selling costs can materially move the result.

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