Project the whole hold-period return on a buy-hold-sell: IRR, equity multiple, NPV at your hurdle rate, and discounted payback. Move the sliders to see how cash flow, appreciation and the hold period combine.
Models a cash purchase — the annual net cash flow is already after any financing, and the sale price is net of selling costs. NPV and the discounted payback use your hurdle rate.
6.5%IRR
Indicative only, on flat appreciation and cash-flow assumptions. IRR is the time-weighted return; equity multiple is how many times your cash comes back; a positive NPV means the deal beats your hurdle rate.
The annualised, time-weighted return that makes the discounted cash flows net to zero — the single number that folds together the rent you collect each year and the gain when you sell. It rewards money that comes back sooner.
The total cash you get back (all the years' cash flow plus the net sale proceeds) divided by the cash you put in. A 2.0× multiple means you doubled your money over the hold — but it ignores how long that took, which is why IRR sits alongside it.
NPV discounts every cash flow at your hurdle rate; positive means the deal beats that required return. Discounted payback is how many years it takes for those discounted cash flows to repay the cash you invested.
The sale value here compounds a flat appreciation rate. Dubai prices are cyclical — run a conservative case (and a zero-appreciation case) to see how much of the return depends on price growth versus rental income.
Your cash invested should include the 4% DLD fee and other purchase costs, and the sale is shown net of selling costs. Leaving either out flatters the IRR and the multiple.
The annual net cash flow is taken as already after any financing, and the sale is net of selling costs. For a heavily mortgaged deal, use the investment-analysis calculator for the lender metrics alongside this.