This calculator will help you to determine the average annual rate of return on an investment that has a non-periodic payment schedule.
Instructions: Enter the month, day, and year of the beginning investment, and then for each investment and withdrawal after that. All cash flows entered after the first line must be dated later than the first line, but need not be entered in the order they occurred. Note that for an entry line to be included in the calculations, the month, day, and 4-digit year, and one investment or withdrawal is required. And finally, the first line and at least 1 withdrawal are required in order to complete the calculation.
Note: The calculator will make up to 100,000 attempts at finding a rate solution for the cash flow schedule. If the calculator reaches the maximum number of tries you will receive an alert message warning you of the potential inaccuracy of the rate result.
Multi-Purpose Investment Calculator
When getting started in real estate investment, one may find that the only constant is uncertainty. This fact of the housing and property market is especially true when dealing with unpredictable numbers. The fluctuating figures of an investment earnings schedule with non periodic payments is just such an example of the oscillating amounts that result from an ever changing scene of brokers, buyers, owners and borrowers. Many investors find themselves eager to put the cash and effort into what looks to be a profitable development or building venture, but would like to see a hard and fast image of what they might see in their financial future. The portfolio rate of return calculator will give one this exact picture given the appropriate starting figures and details of the investment, putting the what-ifs at rest and aiding the investor in tightening and clarifying the prospects of their portfolio for themselves and all involved contributors.
Investing in Real Estate
Like any other capital venture in the monetary world, various types of real estate investments are bound to yield different results. Fortunately, though for the average real estate investor, profits or rates of return on investments have steadily climbed with the economy 1% per year after inflation from 1980 to 2005. Naturally, rates of return for high stakes major development commercial real estate cases are much higher than that of one family residencies or smaller industries.
On average, rates of return on well planned real estate investments tend to even out to an annual figure of approximately 10-12%. But what about when you have an investment in your hands with a fluctuating payment schedule that varies by factors of rate or time? In this case, it is time to whip out the useful portfolio rate of return calculator, specifically designed for non periodic investments, and process a net profit or loss figure as well as a handy annual average rate of return. This rate of return is the yearly amount of cash the investor can count on gaining from the investment, provided that no other variables, such as fees, losses, or bills, are on the table.
Use the Calculator to Your Advantage
In order to get an accurate result from the tool, you must first have the critical information on hand regarding your investment. The day, month, year and amount of your initial deposit are needed, as well as carefully kept records of all withdrawals – and the resulting balance – that have been made, and their dates also. Investors must be sure to enter no less than the starting funds and date they were made, in addition to at least one withdrawal or balance update in order to get an average rate of return that makes sense under the circumstances.
By pinpointing a standardized rate solution for your particular uncertain cash flow structure, the calculator helps to give peace of mind and guaranteed investment prosperity to those with an unstable investment scheme. The expected annual rate of return is a good figure to have on the radar even before you sign the final closing investment contract on your real estate piece, as you may want to refer back to it at a later date and base future simultaneous investments and negotiations on your anticipated profits and/or losses.