Follow the default numbers.
With purchase price of $350,000, monthly rent of $2,400, the model gives annual irr: 3.72%.
The formula is discount rate where net present value of cash flows is zero. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
IRR is a timing-sensitive return
The calculator uses the shared rental model to produce an initial negative cash investment, annual operating cash flows and a final sale. A bisection solver finds the annual discount rate that makes their net present value zero. The computation is for evenly spaced annual cash flows. Transactions on irregular dates require an XIRR model, which this tool does not claim to provide.
Review cash flows before the percentage
The table makes the underlying cash stream visible. Sale equity can dominate the return, so a small appreciation change may move IRR considerably. No meaningful result is shown when the modeled stream lacks both a positive and a negative flow. Nonconventional flows can admit more than one root; use NPV and the full schedule when that situation matters.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.