XIRR Calculator for Real Estate Investment
To calculate real estate XIRR: list purchase price as negative cashflow at purchase date. Add all maintenance costs, property tax, and loan prepayments as negative cashflows at their dates. Add all rental income received as positive cashflows. Add the expected sale price as positive cashflow at exit date. This gives the true all-in return on your property investment.
XIRR
17.11%
Annualized return using Newton-Raphson method
XIRR (Extended Internal Rate of Return) handles irregular cashflows. Use negative values for investments and positive for redemptions.
Weekly Indian rate update
RBI repo, top FD rates, tax deadlines. Free. No spam.
Calculated with CalcCrack
Common questions about XIRR Calculator for Real Estate Investment
What is the typical real estate XIRR in top Indian cities?
Including rental yield (2-3%) plus price appreciation (7-10%), total real estate XIRR in top Indian metros is approximately 9-13% pre-tax over 10-year holding periods. After deducting maintenance (0.5-1% of value per year), property tax, and capital gains tax, post-tax XIRR is typically 7-11%. This is below Nifty 50 XIRR historically but offers leverage benefits.
How do I include home loan EMI in XIRR calculation for property?
Each monthly EMI is a negative cashflow. Down payment and all purchase costs at closing are a large negative cashflow. Annual maintenance and property tax are negative cashflows. Monthly rent received is positive cashflow. Final sale proceeds (after capital gains tax and brokerage) is a large positive cashflow. XIRR on this entire series gives the leveraged return on your equity invested.
What costs are often forgotten in real estate XIRR calculations?
Commonly forgotten: stamp duty and registration (5-8% upfront), brokerage on purchase and sale (0.5-2% each), interior costs for own use or to attract tenants (Rs 3-15 lakh), society maintenance charges (Rs 2,000-10,000/month), property tax (Rs 5,000-30,000/year), loan insurance, and months of vacancy between tenants. Including all these typically reduces real estate XIRR by 1-3 percentage points.