Investor IRR & Equity Waterfall Calculator
Switch from CoC to real capital math. Enter purchase price, leverage, rent, and exit cap — see levered IRR, equity multiple, and full waterfall year-by-year. Gated PDF via email.
| Input | What It Does | Default |
|---|---|---|
| Purchase Price | Contract price before closing costs | $750,000 |
| Down Payment | Equity in — 25% default for investor DSCR | 25% |
| Rent / Vacancy | Gross rent and vacancy haircut | $4,800 · 5% |
| Opex | Tax + insurance + maintenance + management | $1,080/mo + 5% |
| Exit Cap | Cap that prices the sale — most sensitive input | 5.5% |
| Hold Period | Years before sale | 5 yrs |
How to use the IRR calculator
Go from broker CoC to capital-partner IRR in 4 inputs.
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Set leverage
Purchase price + down payment + rate + amortization = loan, payment, and equity in.
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Set rent & opex
Gross rent, vacancy, taxes/insurance/maintenance, and management % = Year-1 NOI and cash flow.
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Set the exit
Hold period + exit cap + selling costs + rent/expense growth = sale price and net proceeds. IRR is most sensitive to exit cap.
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Gate the PDF
Email to get the full waterfall table + PDF. Then book a strategy call to verify DSCR and max loan with live rates.
Why IRR + Equity Multiple beats CoC alone
CoC tells you year-1 yield on cash in. Capital lives on duration and exit.
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Cash-on-Cash
Year-1 operating cash flow ÷ initial equity. Useful screen, hides leverage and exit. · Ignores amortization paydown · Ignores rent growth and sale
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Equity Multiple
Total returned (sum cash flows + net sale) ÷ equity in. Shows how many dollars come back per dollar in. · 1.00× = return of capital · 2.00× = double your money before time value
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Levered IRR
Discount rate where NPV of [−equity, cash flows, + net sale] = 0. Prices time — a 15% IRR over 5 years beats 15% over 10. · Sensitive to exit cap and hold length · Compare to your hurdle, not to list price
Outputs
What the right-hand panel means.
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Levered IRR
Time-weighted return on equity with leverage and sale. · IRR = r : NPV(−equity, CF₁…CFₙ + net sale) = 0
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Equity Multiple
Total dollars returned per dollar invested. · (Σ CF + net sale) ÷ equity
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Avg Cash-on-Cash
Average annual cash flow ÷ equity. · (Σ CF ÷ hold) ÷ equity × 100
Example (defaults)
$750k purchase, 25% down, 5.5% / 25-yr, $4,800 rent, 5% vacancy, 5-yr hold, 5.5% exit cap.
| IRR | ~4.4% levered |
|---|---|
| Equity Multiple | ~1.24× |
| Year-1 CoC | ~−1.1% (tight at this leverage) |
| Net sale | ~$250k after costs + balance |
Honest math — negative carry year 1 at 75% LTV and 5.5% turns positive via rent growth and paydown. Drop exit cap 50 bps → IRR ~6.5%; raise rent $400 → IRR ~7%. Live leverage verified on a call.
Investor IRR Calculator FAQ
How IRR, equity multiple, and the waterfall are calculated.
Investor IRR Calculator FAQ
How IRR, equity multiple, and the waterfall are calculated.
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