Property Analysis Calculator
Property
Period Type = 1
Acquisition Costs = 0
Other Costs = 0
Cash Flows =
Discount Rate =
Analysis
Periodic Rate =
Term =
NPV =
NPV/Term =
NUS/Annuity =
Average Rental =
IRR =
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Performs several basic investment return analyses for a property acquisition.
Analysis includes Net Present Value (NPV), NPV per Term, Net Uniform Series (NUS) per Annuity, Average Rental, and Internal Rate of Return (IRR).
Rows
- Period Type: Whether the entries are in total dollars or dollars per square foot (PSF), with entries on either a monthly or yearly basis.
- Acquisition Costs: Acquisition costs.
- Other Costs: Other costs (e.g. points, fees, commissions, concessions, etc.)
- Cash Flows: Cash flows. Column 1 is the cash flows. Enter each cash flow in its own row. If a second column is entered (in the form 1000;3) then the second column is the number of occurrences for that cash flow.
- Discount Rate: Annual discount rate expressed as a percentage.
- Periodic Rate: Discount rate expressed on a periodic basis, as determined by the Period Type.
- Term: Term of the cash flows.
- NPV: Net Present Value.
- NPV/Term: Net Present Value per term.
- NUS/Annuity: Net Uniform Series of payments or annuity. This is also known as net effective rental in Canada.
- Average Rental: Average rental without discounting.
- IRR: Internal Rate of Return expressed as an annual rate. You must have initial cash outflows to calculate IRR. (e.g. If Acquisition Costs plus Other Costs is 0 then IRR will display 0.)
Examples
An investment building cost $300,000 and will require $50,000 in repairs. Revenues from rents over the first five years are expected as follows: $50,000; $75,000; $100,000; $115,000; $125,000. With a discount rate of 6%, what would be the Net Present Value and Internal rate of Return for the building?
- Period Type: Total$/Year
- Acquisition Costs: $300,000.00
- Other Costs: $50,000.00
- Cash Flows:
50,000.00
75,000.00
100,000.00
115,000.00
125,000.00
- Discount Rate: 6.000%
The NPV is $32,379.52 and the IRR is 8.897%.
Keywords
Period Type
Acquisition Costs
Other Costs
Cash Flows
Discount Rate
Periodic Rate
Term
NPV
NPV/Term
NUS/Annuity
Average Rental
IRR
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Net Present Value
Net Uniform Series
Internal Rate of Return