Instant IRR Calculator

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

Calculator Inputs

Enter the current annual EBITDA or SDE of the business.

EBITDA multiple at purchase.

EBITDA multiple at exit.

Federal + state tax on gains (held > 1 year). Typical: 20-30%.

Percentage of purchase price paid upfront (equity).

Annual interest rate on loan.

Loan amortization period.

Note: Loan calculations use monthly payments with monthly compounding (standard for most business loans).

Years to hold investment.

Annual EBITDA growth rate.

Estimated IRR

Total Return on Investment

Cash-on-Cash Return (Year 1)

The Internal Rate of Return (IRR) is the annualized return on your investment, taking into account the time value of money. Cash-on-Cash Return shows Year 1 cash flow divided by your initial cash investment. A higher IRR indicates a more profitable investment.

Year-by-Year Breakdown: