Financial calculation: real estate agency

We present a financial calculation of the profitability of a real estate agency. With an initial investment of 400,000 rubles. (1,000,000 rubles including working capital) the internal rate of return will be 25.7%, the simple payback period is 3.8 years, the profitability index is 1.5. 

Limitations and Assumptions:

This financial calculation reveals some guidelines for opening a real estate agency in a large city.

In preparing this financial report, the following reports have been prepared:

  • Profits and Losses Report;
  • Cash flow statement;
  • Balance;
  • Financial indicators;
  • Cost price;
  • Integral indicators are calculated.

Calculation parameters

  • Financial calculations were carried out in the licensed program “Alt-Invest 6.0.”, license number 61277.
  • The calculations were carried out by years.
  • All financial and economic indicators of the project were calculated according to the methodology adopted in world practice in accordance with the methodological recommendations for evaluating the effectiveness of investment projects No. 477 of June 26, 1999 and the Decree of the Government of the Russian Federation of November 22, 1997 No. 1470.
  • Calculation of investment efficiency criteria was carried out in accordance with the generally accepted international method of cash flow analysis.
  • Cash flows are discounted in increments of one year.

How to organize a business for the installation of heating systems

Own business: welding