IRR Targeting Investor Tool
Originally published: 10/02/2022 15:06
Last version published: 08/01/2024 09:27
Publication number: ELQ-94419-5
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IRR Targeting Investor Tool

This template lets investors play with various IRR targets for up to 15 years.

Description
Not many calculators allow the user to enter an IRR input in order to show the amount of total equity distribution needed to attain the rate at a given exit year.

 IRR is different than ROI and this tool makes it easy to see how they are different.This investor tool will display the ending cash distribution that is required to be paid out at the end of each year for up to 15 years so that the IRR is achieved. 

User inputs include:
1. Initial investment
2. Any future investments over the life of the deal per period
3. Any cash distributions received over the life of the deal per period
4. IRR targetThe output is a running balance owed as well as a general return summary. 

The summary lets the user define an exit year and based on the year chosen this template calculates the total return required so the desired rate is achieved while taking time into account. Also, the summary displays the ROI for the entire period as well as a DCF Analysis.

Note, this is a Google Sheet template and requires a free Gmail account to use. The download link comes in a Microsoft word doc.

Want Even More Templates? Check out My Max Bundle:
- All Templates: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic

This Best Practice includes
1 Google Sheet tempate and 1 Tutorial Video

Jason Varner offers you this Best Practice for free!

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Further information

Determine cash distributions needed to attain a target IRR

Up to 15 periods.


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