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Real Estate Deal Analysis & Advice
HomeForumsReal Estate Deal Analysis & AdviceWhat discount rate to use to calculate NPV?
Amber C.'s profile image
Amber C.'s profile image
Amber C.
  • Rental Property Investor
  • from Toronto, ON
  • Member since Sep 20, 2018
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Amber C.'s profile image
Amber C.'s profile image
Amber C.
  • Rental Property Investor
  • from Toronto, ON
  • Member since Sep 20, 2018
Connect
Amber C.
  • Rental Property Investor
  • Toronto, ON
5
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22
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Real Estate Deal Analysis & Advice

What discount rate to use to calculate NPV?

Amber C.
  • Rental Property Investor
  • Toronto, ON
Posted Oct 18 2019, 07:41

I am using a pretax discount rate 12% to evaluate my deal now.  What rate do people use?

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Jason Dillard
  • Real Estate Broker
  • from Greer, SC
  • Member since Feb 20, 2013
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Jason Dillard's profile image
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Jason Dillard
  • Real Estate Broker
  • from Greer, SC
  • Member since Feb 20, 2013
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Jason Dillard
  • Real Estate Broker
  • Greer, SC
267
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538
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Jason Dillard
  • Real Estate Broker
  • Greer, SC
Replied Oct 18 2019, 07:49

Depends on what rate you can earn with your cash on other deals.  It's different for individual's needs and opportunities.

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