The annualized return rate that accounts for all cash flows over a property's holding period.
IRR is the most comprehensive return metric in real estate. It calculates the discount rate at which the present value of all future cash flows (including the eventual sale) equals the initial investment. IRR captures the time value of money and combines cash flow, appreciation, and equity buildup into a single annualized percentage.
IRR is the discount rate where NPV of all cash flows = 0IRR is solved iteratively — it's the rate that makes the net present value of all cash flows equal to zero.
You invest $50,000 in a rental property, receive $4,000 in annual cash flow for 5 years, then sell the property and net $80,000 after paying off the mortgage. The IRR on this investment is approximately 13.5%, accounting for both the cash flows and the eventual sale proceeds.
Richify automatically calculates internal rate of return (irr) and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
The annual cash flow earned on the actual cash invested in a property.
The net cash a rental property generates after all expenses including mortgage payments.
The increase in a property's market value over time.
The growth in your ownership stake in a property as you pay down the mortgage.
Stop calculating real estate metrics by hand. Richify computes internal rate of return (irr) and 10+ other key metrics for every property in your portfolio.
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