Income or appreciation? Measure the difference.
Model one holding period with explicit assumptions. This is a tax-neutral scenario, not a forecast, security analysis, or investment recommendation.
Ready to calculate monthly cashflows with Formula.js.
Yield is an input. Return is a cashflow.
A quoted distribution yield does not include capital change, payout interruption, reinvestment timing, inflation, taxes, or transaction costs. Make each assumption visible before deciding what you expect.
How are distributions modeled?
Each month, the current portfolio value grows at the annualized capital rate. Net distribution equals current value times annual yield divided by twelve, after the haircut. Reinvested cash buys additional modeled exposure.
What do IRR and NPV add?
Formula.js IRR measures the periodic return implied by the full cashflow trail. NPV discounts those cashflows by the inflation input to show modeled value above the initial outlay in present-value terms.
What is deliberately excluded?
Taxes, leverage, security-specific fees, live prices, changing distributions, dilution, liquidity, and market risk are outside this compact scenario unless represented in the haircut or growth assumption.