Real Estate Syndication Calculator
Enter your investment, the raise, project profit and the deal terms.
Net profit to you
—
Enter values above
Your equity share
Preferred return
—
Sponsor promote
—
Total multiple
—
Annualised return (IRR)
—
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Your investment ($) | 100000 |
| Total equity raised ($) | 2000000 |
| Project profit ($) | 1500000 |
| Preferred return (%) | 8 |
| Sponsor promote above pref (%) | 20 |
| Hold period (years) | 5 |
| Result | Value |
|---|---|
| Net profit to you | $68,000 |
| Your equity share | 5.00% |
| Preferred return | $40,000 |
| Sponsor promote | $7,000 |
| Total multiple | 1.7x |
| Annualised return (IRR) | 10.93% |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Real Estate Syndication Calculator
- Your investment ($) — default 100000
- Total equity raised ($) — default 2000000
- Project profit ($) — default 1500000
- Preferred return (%) — default 8
- Sponsor promote above pref (%) — default 20
- Hold period (years) — default 5
- Press Calculate to update the results instantly.
Frequently asked questions
The share of profit above the preferred return that goes to the general partner as an incentive. A 20% promote after an 8% preferred return is a common structure.
Compare the promote against the work the sponsor does and the risk they carry. Well-aligned deals have a hurdle before the promote and a sponsor co-investment alongside yours.
No — it assumes profit is distributed at exit. Deals that pay cash flow during the hold period will deliver a higher IRR than the figure shown.