Methodology / Glossary / Equity IRR

Equity IRR

IRR calculated only on equity cash flows, excluding debt. Equity IRR measures the return to the developer's own capital, which is amplified by leverage (borrowing).

Why it matters

Equity IRR is typically much higher than project IRR due to leverage. It is the true measure of return to the investor.

In Profivo

Displayed alongside project IRR to show the impact of the financing structure.

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