Net present value discounts future cash flows and sale proceeds back to today's money, letting you judge whether a property investment beats your required return.
Your equity released when you sell at the end.
Assessment
Beats your target return
A positive NPV means the investment is expected to earn more than your discount rate.
Use the minimum annual return you would accept for taking this risk. Many investors use their cost of capital or the return available from a comparable alternative.
The investment is projected to earn more than your discount rate. A negative NPV means it falls short of that benchmark.
Learn how to use net present value (NPV) for property investment decisions: the formula, how to choose a discount rate, multi-year cash flow projections, 3 worked examples from the US, UK and UAE, and when NPV beats simp
Disclaimer: This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Verify figures with a qualified professional before making decisions.
