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Free calculator · Valuation & Returns

Investment Decision, NPV, IRR & MIRR

Evaluates a single property acquisition on unlevered and levered NPV and IRR, equity multiple, cash-on-cash, and MIRR. Inputs cover purchase price, Year 1 NOI and growth, reserves, hold period, exit cap rate, selling costs, loan terms, and the required returns.

Interactive Tool

Property & exit

Purchase price

Year 1 NOI

NOI growth / year

Year 1 reserves

Reserve escalation / year

Hold period

Exit cap rate

Selling costs

Financing & hurdles

Loan-to-value

Interest rate

Amortization

Unlevered required return

Levered required return

Reinvestment rate (MIRR)

Unlevered (property level)

Investment value (PV at required return)

$29,489,486

Unlevered NPV (value − price)

−$510,514

Unlevered IRR

7.09%

vs 7.50% hurdle

Net reversion

$32,600,803

fwd NOI ÷ 5.75% − costs

Levered (equity), year by year

Y1CFBDS $1,584,000DS −$1,295,029CFADS $288,9712.4%

Y2CFBDS $1,632,180DS −$1,295,029CFADS $337,1512.8%

Y3CFBDS $1,681,819DS −$1,295,029CFADS $386,7893.2%

Y4CFBDS $1,732,960DS −$1,295,029CFADS $437,9313.6%

Y5CFBDS $1,785,649DS −$1,295,029CFADS $490,6204.1%

SaleNet $32,600,803Repay −$16,749,784Equity $15,851,019

Levered IRR

8.57%

vs 9.00% hurdle

Equity multiple

1.48x

on $12,000,000

MIRR

8.41%

reinvest @ 5.0%

Levered NPV

−$221,258

at 9.00%

Mortgage constant

7.19%

Year 1 DSCR

1.27x

Debt yield

9.2%

Leverage lifts the IRR from 7.09% to 8.57%, positive leverage. Borrowing concentrates results onto a smaller equity base; it cannot turn an over-priced acquisition into a strong investment.

Learn the concept

This calculator comes from the free Real Estate Finance course, where the concept is taught with readings, worked examples, and practice questions.

Open Real Estate Finance

Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.