IRR Calculator, Internal Rate of Return, Lehigh Valley | Tim Tepes

Real Estate Calculators

What is the Internal Rate of Return on this holding period?

The Internal Rate of Return, IRR, is the return that makes all of your investment's cash flows, in and out, net to exactly zero, discounted by year. It is the truest way to compare a three-year flip against a fifteen-year rental, because it accounts for when the money actually arrives. This calculator runs a proper IRR on the cash flows you enter, plus a simple compounded return estimate.

Cash flows over the holding period

The model assumes equal annual cash flows and one lump sale in the final year. For uneven cash flows, enter the differing years through the flow field or use a spreadsheet; the math below is the same.

Internal Rate of Return (IRR)
12.4%
Simple compounded return estimate
10.2%
Total cash returned
$356,000
Multiple on invested cash
5.1x

Reading IRR honestly: IRR rewards early cash, so a deal that returns money fast can show a higher rate than a steadier one with the same total dollars. Tim pairs IRR with cash-on-cash and equity multiple when he underwrites, so one aggressive number never carries the whole story. IRRs of 8 to 14 percent are common targets on stabilized Lehigh Valley rentals.

Not sure the numbers tell the whole story?

Run the numbers with Tim, then talk them through

Estimates are a great starting point. A 20-minute conversation with Tim Tepes turns them into a plan you can act on, with real listings, real comparables, and honest advice.

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Estimates are for education and planning only, not a loan approval, appraisal, or tax advice. Actual costs, rates, and values vary by property and lender.

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