Definition
The discount rate at which the net present value of all cash flows from an investment equals zero.
Example
The deal projected a 16.4% IRR over a five-year hold with a 1.9× equity multiple.
Related terms
Frequently asked questions
What does Internal Rate of Return mean in real estate?
The discount rate at which the net present value of all cash flows from an investment equals zero.
How is Internal Rate of Return used in practice?
The deal projected a 16.4% IRR over a five-year hold with a 1.9× equity multiple.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.