Real Estate IRR Calculator
ConventionalperiodicIRR, bounded bisection under one initial negative cashflow/nonnegative future cash flows, external sign-changing rate bracket>-1. Multiple-sign-change ambiguous IRR srejected, no date-irregularXIRR, investment forecast or guaranteed return.
Description
Periodic IRR is a rate that makes discounted cash flows sum to zero.
Periodic IRR is a rate that makes discounted cash flows sum to zero.1
Conventional cash flows and an explicit sign-changing rate bracket make this solver's branch unambiguous. The calculation and input requirements are explained below.
When to use Real Estate IRR Calculator
Enter at least two periodic cash flows: a negative initial flow, nonnegative later flows and at least one positive later flow.
How to use Real Estate IRR Calculator and how it works
- Prepare the measurements or independently established model inputs described below, with matching units and observation scope.
- Enter the required fields and run Real Estate IRR Calculator.
- Read the result fields using the formula, output units, signs and ordering explained below.
- Correct any rejected inputs and rerun; interpret the result within the stated model and its assumptions.
| Input field | Meaning | Value type | Requirement |
|---|---|---|---|
| actualConventionalPeriodicCashFlows | Actual Conventional Periodic Cash Flows. Use the units and matching context stated in the calculation below. | array of number | Required; other constraints below |
| actualCallerBracketLowerRate | Actual Caller Bracket Lower Rate. Use the units and matching context stated in the calculation below. | number | Required; finite; other constraints below |
| actualCallerBracketUpperRate | Actual Caller Bracket Upper Rate. Use the units and matching context stated in the calculation below. | number | Required; finite; other constraints below |
Enter at least two periodic cash flows: a negative initial flow, nonnegative later flows and at least one positive later flow. Supply a lower rate greater than -1 and a higher upper rate. Require an endpoint root or an NPV sign change. Return an endpoint root immediately; otherwise perform up to 100 bisections and return the final midpoint. The result is a rate fraction per cash-flow period; irregular dates and nonconventional sign changes are excluded.
solve sum(cash_i/(1+r)^i)=0 within callerBracket Apply the input ordering, units and branch conditions stated above.
| Output field | Meaning | Value type |
|---|---|---|
| result | Object containing the calculated or selected fields below. | object |
| result.conditionalPeriodicIrr | Conditional Periodic Irr. Interpret its unit, sign, order or availability flag as explained above. | number |
{
"input": {
"actualConventionalPeriodicCashFlows": [
-100,
110
],
"actualCallerBracketLowerRate": -0.5,
"actualCallerBracketUpperRate": 0.5
},
"output": {
"result": {
"conditionalPeriodicIrr": 0.09999999999999998
}
}
}Limitations and assumptions
The calculation uses the supplied observations and model inputs. It does not collect measurements, select a reference population or coefficient, or establish that the model applies to the actual case. The stated branch conditions and output units remain part of the result.
All fields require explicit values. Unexpected fields, wrong types, nonfinite numbers and sparse arrays are rejected. Alignment, bounds and supported-token rules are explained above; extremely large inputs or nonfinite results can also fail. Input errors differ from successful false comparisons, unavailable-domain flags and empty match lists.
Alternative or Complementary methods
Use Yield Capitalization Value Calculator for a complementary operation: Yield capitalization discounts future net operating income and a terminal net reversion.
Use IRR Hurdle Calculator for a complementary operation: An IRR hurdle comparison needs a return and contract criteria expressed per the same period.
References
-
Real Estate IRR Calculator — tool.io
Similar or alternative tools
- Yield Capitalization Value Calculator
Yield capitalization discounts future net operating income and a terminal net reversion.
- IRR Hurdle Calculator
An IRR hurdle comparison needs a return and contract criteria expressed per the same period.