Infrastructure IRR.

Infrastructure investment calculator measures returns on toll roads, utilities, airports, telecoms - long-duration assets with stable cash flows and inflation linkage. 100k investment at 6% annual cash yield + 3% inflation linkage over 25 years + 2% terminal appreciation = ~9% IRR. Lower volatility than equities but lower upside.

Example: 100k infrastructure investment, 6% annual cash yield, 3% inflation linkage, 25-year hold, 2% terminal appreciation. Annual cash flow grows from 6k year 1 to 12k year 25. Total cash flows: 225k. Terminal value: 164k. Total return: 289k. MOIC 2.89x. IRR 8.6%. Steady, inflation-protected returns suitable for pension funds and long-horizon investors.

Infrastructure characteristics: (1) Long-life assets (25-99 years). (2) Inflation-linked revenues (regulated utilities, toll concessions). (3) Stable demand (essential services). (4) High barriers to entry. (5) Lower correlation with equities. (6) Lower volatility (8-12% vs 15-20% equities). (7) Strong income (5-9% yields). Access for retail: listed infrastructure funds (Brookfield Infrastructure BIPC, Macquarie Infrastructure), infrastructure ETFs (IGF, NFRA). Direct access typically institutional only.

Run it with sensible defaults

Using investment amount of 100,000, annual cash yield of 6%, annual inflation linkage of 3%, hold period of 25 years, the calculation works out to 5.35%. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Investment Amount, Annual Cash Yield %, Annual Inflation Linkage %, Hold Period (years), and Terminal Appreciation % — do not pull with equal force. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.

How the math works

Total return = cash flows (inflation-linked) + terminal appreciation. IRR from MOIC. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Using this well

Treat the output as one point on a wider map. Run it three times — a pessimistic case, a central case, and a stretch case — and plan against the pessimistic one. That habit alone separates people who stick with an investment plan from those who bail at the first wobble.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.