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IRR Calculator

Internal Rate of Return (IRR)

Investment Assumptions

Operating

Number of apartment units 
Gross monthly rent$
Vacancy percentage% 
Operating expenses per unit$
Annual real estate taxes$
Yearly inflation as a percentage% 
Total annual capital improvements$ 

Financial

Project cost$ 
Loan as a percentage of cost% 
Annual interest rate% 
Amortization term of loan in years  
Points to aquire loan  
Other closing cost$ 
Capitalization rate on sale% 

Other Assumptions

  1. Investor will be able to utilize passive losses.
  2. Tax rates are as follows: 35% on yearly losses, 25% on depreciation recapture, 15% on long-term capital gain.
  3. Based on the above assumptions and a sale after the fifth year, we have estimated an after-tax rate of return on the investment.
  4. This projected rate of return is HIGHLY sensitive to the assumptions that are used by the investor.

 

 

Disclaimer

The accuracy of this calculator and its applicability to your circumstances is not guaranteed. We recommend obtaining investment and real estate advice from qualified professionals.


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