Instant IRR Calculator

Calculate the IRR of buying a business based on the multiple and the approximate growth rate.

Enter the current annual EBITDA or SDE of the business.

Enter the EBITDA/SDE multiple used for the business purchase and exit.

Enter the expected annual growth rate of EBITDA/SDE. Use negative values for decline.

Enter the number of years you plan to hold the investment.

Estimated IRR

33.34%

Total Return on Investment

266.67%

The Internal Rate of Return (IRR) is the annualized return on your investment, taking into account the time value of money. A higher IRR indicates a more profitable investment. This assumes you sell at the same multiple after the holding period.

Year-by-Year Breakdown:

Year 0: $250,000 (Purchase at $750,000)
Year 1: $250,000
Year 2: $250,000
Year 3: $250,000
Year 4: $250,000
Year 5: $250,000 (Exit at $750,000)