NPV Calculator

Underwriting Assumptions
Property Details
Name
Street Address
City, State, Zip
RSF or # of Units
Other Notes
Income & Expenses Annual Growth
Gross Revenue
$
%
Operating Expenses
$
%
Capital Reserves
$
%
Year 1 NOI $100,000
Purchase, Sale & Return Assumptions Price
Acquisition Cap Rate
%
$1,250,000
Disposition Cap Rate
%
NPV Discount Rate
%
Hold Period years
Financing Assumptions Loan
Loan to Value (LTV)   
%
$875,000
Interest Rate
%
Loan Term years
Amortization years
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Results & Recommendations

NPV = $1,317,176

The Net Present Value ("NPV") represents the recommended purchase price in order to achieve your targeted return of 10.0%. The Purchase Price of $1,250,000 is $67,176 below this NPV.

IRR = 10.79%

The Internal Rate of Return ("IRR") represents the unleveraged return at the acquisition price of $1,250,000 over your 10 year hold period. This return is above your targeted return of 10.0%.
Financial Details
Operating Statement Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Revenue 200,000 206,000 212,180 218,545 225,102 231,855 238,810 245,975 253,354 260,955
(-) Operating Expenses (100,000) (103,000) (106,090) (109,273) (112,551) (115,927) (119,405) (122,987) (126,677) (130,477)
Net Operating Income 100,000 103,000 106,090 109,273 112,551 115,927 119,405 122,987 126,677 130,477
(-) Capital Reserves 0 0 0 0 0 0 0 0 0 0
(-) Debt Service (61,381) (61,381) (61,381) (61,381) (61,381) (61,381) (61,381) (61,381) (61,381) (61,381)
Cash Flow 38,619 41,619 44,709 47,892 51,170 54,546 58,024 61,606 65,296 69,096
Purchase Price / Sale Price (1,250,000) 1,630,966
Mortgage Amount / Payoff 875,000 (646,852)
Final Cash Flow (375,000) 38,619 41,619 44,709 47,892 51,170 54,546 58,024 61,606 65,296 1,053,210
Unleveraged Yield 8.0% 8.2% 8.5% 8.7% 9.0% 9.3% 9.6% 9.8% 10.1% 10.4%
Leveraged Yield 10.3% 11.1% 11.9% 12.8% 13.7% 14.6% 15.5% 16.4% 17.4% 18.4%