Unleveraged IRR Calculator
Calculate the property-level return before financing from total cost, operating cash flow and sale proceeds.
The annual discount rate that sets project cash-flow NPV to zero is 10.55%.
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Get the model · €49 incl. VATHow the Unleveraged IRR calculation works
Unleveraged IRR solves NPV = 0 using project cash flows before loan draws, interest and principal repayment.
Example calculation
Pay €10.0m, receive €650k annual net cash flow and sell for €12.5m after five years: unleveraged IRR is 10.55% and the project multiple is 1.58x.
How professionals use the result
Use unleveraged IRR to compare underlying property economics without capital-structure differences.
Common mistakes
- Including loan proceeds
- Using NOI before recurring capex when cash flow is after capex
- Ignoring selling costs
- Comparing different hold periods without context
Unleveraged IRR Calculator FAQs
What does the Unleveraged IRR calculator measure?
Calculate the property-level return before financing from total cost, operating cash flow and sale proceeds.
What formula does the Unleveraged IRR calculator use?
Unleveraged IRR solves NPV = 0 using project cash flows before loan draws, interest and principal repayment.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use unleveraged IRR to compare underlying property economics without capital-structure differences.
Which mistakes are most common?
Including loan proceeds; Using NOI before recurring capex when cash flow is after capex; Ignoring selling costs; Comparing different hold periods without context.