---
# System prepended metadata

title: Suggested Price for Each NFT

---

# Suggested Price for Each NFT

- Initial minimum purchase amount: $P$
- Minimum monthly returns: $C$
- Total duration: $N$ months

## Calculating IRR

To calculate the Internal Rate of Return (IRR), which in this context is the monthly rate, use the following formula:

$$
\sum_{t=1}^{N} \frac{C}{(1 + \text{IRR})^t} = P
$$

## Calculating the Suggested Price for Each NFT

To calculate the suggested price for each NFT, we need to use the previously calculated IRR as the discount rate. The suggested price of an NFT maturing in month $t$ at the current time $t_0$ can be calculated using the following formula:

$$
\text{Suggested Price}_{t-t_0} = \frac{C_t}{(1 + \text{IRR})^{t - t_0}}
$$

Where:
- $C$ is the face value of the NFT, also the minimum monthly returns.
- $t$ is the maturity month.
- $t_0$ is the current time point, with project start as 0, 0.5 for half a month later, and so on.
- $\text{IRR}$ is the previously calculated internal rate of return/monthly rate.

## Example

- Initial minimum purchase amount: 100 U
- Minimum monthly returns: 1 U
- Total duration: 240 months (20 years)

$$
\sum_{t=1}^{240} \frac{1}{(1 + \text{IRR})^t} = 100
$$

The IRR is approximately 0.877%.

To calculate the suggested price of an NFT maturing in the 98th month, at 1.5 months into the project:

$$
\text{Suggested Price} = \frac{1}{(1 + 0.00877)^{98 - 1.5}}
$$

The suggested price is approximately 0.43058 U. This represents the discounted price of an NFT with a face value of 1 U, maturing in the 98th month, calculated at 1.5 months into the project, using the project's overall IRR.
