Calculate irr & npv for real estate investments and properties
Enter your initial investment and expected cash flows over time, plus your discount rate. The calculator computes the Internal Rate of Return (IRR) and Net Present Value (NPV) to evaluate investment profitability.
Invest $500,000 today, receive annual cash flows of $60,000 for 10 years plus $600,000 sale proceeds. With 10% discount rate, NPV and IRR show if investment exceeds your return threshold.
Most real estate investors target 15-25% IRR. Higher IRR indicates better returns, but also consider risk. Compare to alternative investments and required returns.
Cash-on-cash measures annual return. IRR measures annualized return over the entire holding period, accounting for timing of all cash flows.
Investment returns less than your discount rate (required return). Project should be rejected unless there are non-financial benefits.