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Equity IRR calculator
Calculate the time-weighted internal rate of return on the equity invested in a development project — what capital partners care about most.
Formula
Equity IRR = discount rate that sets NPV of equity cashflows to zero
Equity cashflows = equity contributions (negative) plus equity distributions (positive), period by period.
Inputs
Equity drawdown schedule
Equity contributions, period by period — usually heaviest in months 1–6 (acquisition, deposits, early works).
Equity distribution schedule
Equity returns, period by period — usually concentrated around settlement of completed dwellings.
Output
Equity IRR (%)
Annualised time-weighted return on equity. Capital partners typically look for 20%+ on build-to-sell apartments.
Worked example
$5M of equity drawn evenly over months 1–6, $7.1M returned over months 30–34: equity IRR ≈ 18.4%.
If the same $2.1M equity profit returned in 18 months instead of 34, IRR climbs above 25%. Time matters.
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