IRR, ROI, profit and payback for a real-estate development project, from land cost, construction cost, timeline and sales realisation — with the formula and the full monthly cash-flow table shown, not hidden behind a single verdict.
Assumes land paid in month 0, construction spread evenly across its timeline, and sales collected evenly starting only after construction completes — no presales. See “How this is calculated” below.
Project IRR (annualised)
23.6%
1.78% monthly, annualised
ROI
40.0%
Profit ÷ total cost, ignoring timing
Profit
₹2,00,00,000
₹7,00,00,000 in − ₹5,00,00,000 out
Payback
Month 27
First month cumulative cash flow turns non-negative
Monthly cash-flow table
| Month | Outflow | Inflow | Net | Cumulative |
|---|---|---|---|---|
| 0 | -₹2,00,00,000 | — | -₹2,00,00,000 | -₹2,00,00,000 |
| 1 | -₹16,66,667 | — | -₹16,66,667 | -₹2,16,66,667 |
| 2 | -₹16,66,667 | — | -₹16,66,667 | -₹2,33,33,333 |
| 3 | -₹16,66,667 | — | -₹16,66,667 | -₹2,50,00,000 |
| 4 | -₹16,66,667 | — | -₹16,66,667 | -₹2,66,66,667 |
| 5 | -₹16,66,667 | — | -₹16,66,667 | -₹2,83,33,333 |
| 6 | -₹16,66,667 | — | -₹16,66,667 | -₹3,00,00,000 |
| 7 | -₹16,66,667 | — | -₹16,66,667 | -₹3,16,66,667 |
| 8 | -₹16,66,667 | — | -₹16,66,667 | -₹3,33,33,333 |
| 9 | -₹16,66,667 | — | -₹16,66,667 | -₹3,50,00,000 |
| 10 | -₹16,66,667 | — | -₹16,66,667 | -₹3,66,66,667 |
| 11 | -₹16,66,667 | — | -₹16,66,667 | -₹3,83,33,333 |
| 12 | -₹16,66,667 | — | -₹16,66,667 | -₹4,00,00,000 |
| 13 | -₹16,66,667 | — | -₹16,66,667 | -₹4,16,66,667 |
| 14 | -₹16,66,667 | — | -₹16,66,667 | -₹4,33,33,333 |
| 15 | -₹16,66,667 | — | -₹16,66,667 | -₹4,50,00,000 |
| 16 | -₹16,66,667 | — | -₹16,66,667 | -₹4,66,66,667 |
| 17 | -₹16,66,667 | — | -₹16,66,667 | -₹4,83,33,333 |
| 18 | -₹16,66,667 | — | -₹16,66,667 | -₹5,00,00,000 |
| 19 | — | ₹58,33,333 | ₹58,33,333 | -₹4,41,66,667 |
| 20 | — | ₹58,33,333 | ₹58,33,333 | -₹3,83,33,333 |
| 21 | — | ₹58,33,333 | ₹58,33,333 | -₹3,25,00,000 |
| 22 | — | ₹58,33,333 | ₹58,33,333 | -₹2,66,66,667 |
| 23 | — | ₹58,33,333 | ₹58,33,333 | -₹2,08,33,333 |
| 24 | — | ₹58,33,333 | ₹58,33,333 | -₹1,50,00,000 |
| 25 | — | ₹58,33,333 | ₹58,33,333 | -₹91,66,667 |
| 26 | — | ₹58,33,333 | ₹58,33,333 | -₹33,33,333 |
| 27 | — | ₹58,33,333 | ₹58,33,333 | ₹25,00,000 |
| 28 | — | ₹58,33,333 | ₹58,33,333 | ₹83,33,333 |
| 29 | — | ₹58,33,333 | ₹58,33,333 | ₹1,41,66,667 |
| 30 | — | ₹58,33,333 | ₹58,33,333 | ₹2,00,00,000 |
The cash flow is built month by month: land cost is a single outflow in month 0; construction cost is spread evenly (straight-line) across the construction timeline; sales realisation is collected evenly across the sales/exit period, which starts only after construction finishes (no presales in this simplified model).
IRR (Internal Rate of Return) is the periodic rate r that makes the net present value of that cash-flow series equal to zero:
NPV = Σ CFt / (1 + r)t = 0
This calculator solves that equation monthly via Newton-Raphson (falling back to bisection if it doesn't converge), then annualises the monthly rate as (1 + rmonthly)12− 1 — the standard way to compare a project's return against an annualised benchmark like a fixed deposit or the Nifty 50.
ROIis simpler and ignores timing entirely: profit ÷ total cost. Two projects can have identical ROI but very different IRR if one returns its cash sooner — IRR rewards speed, ROI doesn't.
Payback period is the first month where the running cumulative cash flow turns non-negative — the point at which the project has paid back everything spent on it so far.
This is a deliberately simplified single-scenario model — no financing cost, no tax, no escalation, no presales, straight-line (not S-curve) construction spend. It exists so the formula and every intermediate number are visible and reproducible by hand, not to replace a full feasibility model.
IRR is the periodic rate r that makes the net present value of the cash-flow series equal to zero: NPV = Σ CFₜ / (1+r)ᵗ = 0. This calculator solves it monthly via Newton-Raphson (with a bisection fallback) and annualises the result as (1 + r_monthly)^12 - 1.
No — this free tool is a deliberately simplified single-scenario model: land paid upfront, construction spread evenly, no presales, sales collected evenly after construction completes. The full report runs a 50,000-scenario Monte Carlo simulation with S-curve construction drawdown and presales weighting.
ROI (return on investment) is a single-point ratio of profit to total cost — it ignores timing. IRR is the annualised rate of return that accounts for WHEN each rupee goes out and comes back in, which is why two projects with identical ROI can have very different IRR if their cash-flow timing differs.
No. All calculation happens in your browser — nothing is sent to a server or saved.