The 1st free online IRR calculator providing Private Equity metrics.
No email. No payment details. No personal details. No trial period. No training. No hassle.
FindIRR is the first publicly-accessible site of its kind to explore essential IRR calculations and other profitability metrics such as Equity Multiple and Profit, particularly for Commercial Real Estate (‘CRE’) deals that involve a single tenant.
This is the start of a journey and currently in Beta version. As the tool proves useful, we’ll add additional features.
How does FindIRR work?
The best way to find out is by using FindIRR.com yourself. FindIRR takes you by the hand, step-by-step. If you are a real estate professional and fluent with the usual property terms, you can run FindIRR for IRRs and other DCF metrics for commercial real estate.
In brief, FindIRR asks you one question at a time to build up a Dashboard. This makes it ultra user-friendly for CEOs down to junior Associates. After minimum inputs are entered, you can share IRRs and the respective investment assumptions via email:
Fig. 2: when you have entered assumptions, you can send a free email report
The 2022 RICS Investment Valuation Report is a milestone report containing the pivotal change in direction for the real estate profession. Investment surveyors and valuation professionals must follow the RICS Primary Investment Valuation Methodology for investment valuations which is now deemed to be the Discounted Cash Flow (‘DCF’) method.
Upskilling the wider industry to calculate and advise on the results of DCF metrics such as an IRR is a priority for RICS. To achieve this, the power of the internet and modern technology can be harnessed to liberate surveyors and enable them to calculate essential IRRs – all without costly training or requiring specialist 1990s’ software skills. FindIRR is the first IRR online calculator of its kind that any manager can use first time with no formal training to gain private equity metrics like IRR, Equity Multiple and Profit.
Why is FindIRR free? Education, Education, Education!
The recent RICS Report recommends our industry upskill and become far better at producing cash flows to advise clients.
While not addressed in the paper, we believe a key problem is antiquated technology – cash flow tools have not served RICS professionals properly for years. Most surveyors don’t have time to tie themselves in knots learning complex software. Especially when apps are only getting easier in every other realm of life.
In our experience, there is a significant portion of the investment surveying industry that does not feel a need to pay for highly-complex investment appraisal software like ARGUS Enterprise or MRI Software. Especially to calculate a straightforward IRR that often involves a couple of tenants. For these types of deals, technology is now sufficiently cost-effective to provide a community resource that is free at the point of access.
With lowering costs and the powerful march of modern technology, there is no reason why typical cash flows cannot be viewed freely and rapidly online.
Support the FindIRR Project
There are 3 things you can do:
- Help spread the word! FindIRR (pronounced ‘finder’) is for friends and colleagues who work on CRE deals often involving a single tenant. Copy and share the link: https://www.findirr.com.
- Support us directly. Hosting, maintaining and developing this IRR calculator is not free. If you and/or your business team benefits from this type of resource being available online and upgraded with more features, click here to fuel our team with a round of coffees!
- Share feedback by writing to us at `hello` at findirr dot com. What are the essential features you would need for a typical vanilla single-tenant deal? Let us know so FindIRR can serve even more of your deal conversations.
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What is an IRR?
IRR (‘Internal Rate of Return’) is the universally-recognised metric used to measure the profitability of any cash-yielding investment such as Commercial Real Estate (‘CRE’). In simple terms, comparing IRRs between real estate deals is like comparing the offered saving rates between banks’ saving accounts. I.e. the higher the percentage rate expected per annum, the better the deal is perceived to be.
IRR is also the leading institutional benchmark to measure performance between real estate fund managers. One industry example is the INREV IRR Quarterly Index, which measures IRRs since inception from closed and none-listed European real estate investment vehicles.
IRRs are modelled via Discounted Cash Flows (‘DCFs’), an explicit method that itemises income and expenses over time – i.e. a DCF model. Typically these are part of in-house corporate template models in Microsoft Excel. Further reading: ‘Morgan Stanley: Everything is a DCF Model’
While you remain on the FindIRR.com website you accept the T&Cs. We take your Privacy seriously and no deal or financial details are saved from the calculator. When you have finished with your calculator session, close the internet browser window before you leave your desktop computer.
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