What Is IRV Formula?
IRV is the foundational appraisal identity behind every capitalization-rate calculation: Income equals Rate times Value. Rearranged, it solves for whichever variable is unknown.
Formula
I = R × V ⇄ V = I ÷ R ⇄ R = I ÷ V
Example
Given $24,000 in NOI (I) and a 6% cap rate (R), Value = $24,000 ÷ 0.06 = $400,000.