Finance category
Mortgage, loan, investing, tax, and money calculators.
Equity Multiple Calculator
Calculate the equity multiple for a real estate deal: total cash distributions (operating cash flow plus net sale proceeds) divided by initial equity invested. Includes annualized return.
Equity multiple
2.96×
total distributions / equity
Total profit
$166,200
195.5% total ROI
Annualized return
16.74%
CAGR equivalent
Total cash distributions
$251,200
cash flow + net sale
Reading the number
Equity multiple measures total dollars returned per dollar invested across the entire hold. A 2.0× means you got back $2 for every $1 invested. It complements IRR — equity multiple is total dollars; IRR/CAGR is time-weighted return.
Net sale proceeds: $213,400. Cumulative cash flow during hold: $37,800. Together they equal total distributions divided by equity to produce the multiple.
How to Use
- Enter the equity you invested upfront (down payment + closing + initial rehab).
- Enter expected average annual cash flow during the hold.
- Enter the planned hold period in years.
- Enter the projected sale price, sales costs percentage, and remaining loan payoff at sale.
- Read equity multiple, total profit, ROI, and annualized return.
Frequently Asked Questions
How does equity multiple differ from IRR?
Equity multiple measures total dollars returned per dollar invested over the full hold, ignoring timing. IRR is time-weighted — it heavily rewards earlier returns. Both matter; investors usually look at both.
What's a good equity multiple?
Depends on hold period and risk. 1.5–2.0× over 5 years is solid for stabilized rentals. 2.0–2.5× over 5–7 years is typical target for value-add multifamily. Opportunistic deals target 2.5×+ over similar holds.
Does it include the return of capital?
Yes — equity multiple counts every dollar back to the investor, including the return of original capital. A 1.0× means you got your money back with no profit. 2.0× means you doubled your money.
What if I refinance and pull out cash mid-hold?
Refinance proceeds count as a distribution. Add them to the annual cash flow average or include separately. Some investors track 'equity multiple after refi' to see the boost a cash-out provides.
Related Calculators
Cash on Cash Return Calculator
Annual return on equity vs lifetime equity multiple.
ROI Calculator
Simple ROI calculation for any investment, not just real estate.
CAGR Calculator
Compute the compound annual growth rate of the multiple.
Rental Property Calculator
Build full single-property cash flow that feeds into the multiple.
Cap Rate Calculator
Single-year return metric vs lifetime equity multiple.
Profit per Deal Calculator
Per-flip profit calculation for short-hold deals.
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