Property NPV and IRR calculator (rent escalation, holding period, exit value)
NPV discounts every rupee the property will pay you back to today at your required return; a positive NPV means the deal beats that return. IRR is the return at which NPV is zero. Use this for all-cash deals or treat the loan separately with the ROI calculator.
- IRR
- 11.51%
- Present value of net rent
- ₹32.79 L
- Present value of exit proceeds
- ₹60.35 L
- Equity multiple (cash back ÷ cash in)
- 1.93
- Reading
- Positive NPV: the deal beats your 10% required return.
| Year | Rent | Net cash flow | Present value |
|---|---|---|---|
| Year 1 | ₹6.6 L | ₹5.8 L | ₹5.27 L |
| Year 2 | ₹6.93 L | ₹6.13 L | ₹5.07 L |
| Year 3 | ₹7.28 L | ₹6.48 L | ₹4.87 L |
| Year 4 | ₹7.64 L | ₹6.84 L | ₹4.67 L |
| Year 5 | ₹8.02 L | ₹7.22 L | ₹4.48 L |
| Year 6 | ₹8.42 L | ₹7.62 L | ₹4.3 L |
| Year 7 | ₹8.84 L | ₹1.26 Cr | ₹64.48 L |
Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.
How it is calculated
NPV = Σ CFₜ ÷ (1+d)ᵗ − cost, with CFₜ = rent − expenses each year and the net exit proceeds added in the final year; rent grows at the escalation rate. IRR solves NPV = 0 (Newton iteration). Equity multiple = total cash returned ÷ cash invested, ignoring timing.
Worked example
₹86 lakh all-in for a shop paying ₹6.6 lakh a year with 5% escalation, ₹80,000 expenses, sold after 7 years for ₹1.2 crore (2% selling cost), discounted at 10%: NPV ≈ +₹7.1 lakh and IRR ≈ 11.5%, a little better than the required return, with an equity multiple of 1.9.
Frequently asked questions
What discount rate should I use for property?
Your realistic alternative return: 8–10% for a conservative investor (debt funds, FDs plus a premium), 12% or more if you would otherwise be in equities.
NPV vs IRR: which should I trust?
Both agree on accept/reject for a single deal. IRR is easier to compare across deals; NPV tells you the rupee value created at your required return.
Can I include a loan?
This tool is unleveraged. Use the ROI calculator, which models the loan and gives IRR on your own money.
Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.