IRR & NPV Calculator for Real Estate

Real Estate Tools

Calculate internal rate of return and net present value for real estate investments, considering time value of money and realistic cash flows over the holding period.

Calculate IRR & NPV

Enter investment details and cash flow information for comprehensive analysis

Initial Investment ($)

Purchase price + closing costs

Holding Period (Years)

Annual Rental Income ($)

Annual Operating Expenses ($)

Maintenance, taxes, insurance, etc.

Loan Amount ($)

Mortgage Interest Rate (%)

Loan Term (Years)

Sale Price ($)

Discount Rate (%)

IRR & NPV Formulas

NPV = Σ [CF_t / (1+r)^t] - Initial Investment

IRR = Rate where NPV = 0

Where: CF = Cash Flow, r = Discount rate, t = Time period

Key Benefits

Accounts for time value of money

Compares different investments: Standardized metric

Realistic cash flows: Includes rents, expenses, mortgage

Long-term decision making: Essential for holding periods

Interpretation

Positive NPV: Profitable investment

Negative NPV: Unprofitable investment

Higher IRR: Better expected return

Compare to hurdle rate: Minimum required return