Measure how many times a real estate investment returns your money. Enter your equity and the cash it paid back, as a yearly cash flow plus sale, year-by-year amounts or a single total, and get the equity multiple together with IRR, profit, payback year and NPV.
Last updated:
$
Your cash in at the start (down payment, fees, repairs)
%
Optional hurdle rate
How do you want to enter returns?
$
Distributions after debt service
%
years
$
Sale price − loan payoff − selling costs
One year per line. Use a negative number for an extra capital call. Include the sale in the last year (amounts on one line are added).
$
All cash returned, including the sale
years
Enter your values to see the result.
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How to use the Equity Multiple Calculator
Enter the equity you invested, including closing costs and any upfront repairs.
Choose an input style: a yearly cash flow with growth plus a sale, a list of each year's cash flow, or just the total returned.
Enter the cash flows; put the net sale proceeds in the final year.
Optionally set a target return to see the NPV at that rate.
Press Calculate equity multiple to see the multiple, IRR, profit and payback year.
Equity multiple formula
Equity multiple = total cash distributions ÷ total equity invested
Distributions include yearly cash flow after debt service, refinance proceeds and net sale proceeds (sale price − loan payoff − selling costs).
Equity invested is the down payment, closing costs, upfront repairs and any later capital calls.
Profit = distributions − equity. A 1.6× multiple means 60% total profit.
IRR is the rate that makes the present value of all cash flows equal to zero; it rewards getting cash back sooner.
Equity multiple vs IRR by hold period
IRR if all cash comes back as one lump sum at the end of the hold (IRR = multiple^(1/years) − 1). Yearly distributions along the way raise the IRR for the same multiple.
Equity multiple
3 years
5 years
7 years
10 years
1.25×
7.72%
4.56%
3.24%
2.26%
1.50×
14.47%
8.45%
5.96%
4.14%
1.75×
20.51%
11.84%
8.32%
5.76%
2.00×
25.99%
14.87%
10.41%
7.18%
2.50×
35.72%
20.11%
13.99%
9.60%
3.00×
44.22%
24.57%
16.99%
11.61%
Tips for using the equity multiple
Always read the multiple together with the hold period and IRR; a high multiple over a long hold can be a mediocre annual return.
When comparing sponsor projections, check whether the multiple is before or after fees and promote (the sponsor's share of profits).
Count refinance proceeds as distributions in the year you receive them; they raise the IRR because cash comes back early.
Run a downside case with a lower sale price to see how sensitive the multiple is to the exit.
Frequently asked questions
What is an equity multiple?
The equity multiple is the total cash an investment returns divided by the total equity put in. A 2.0× multiple means you got back twice what you invested: your original money plus an equal amount of profit. Below 1.0× means you lost money.
How do you calculate equity multiple?
Add up every distribution, including operating cash flow and net sale or refinance proceeds, then divide by all the equity contributed. For example, $500,000 invested that returns $160,000 of cash flow and $640,000 at sale has an equity multiple of $800,000 ÷ $500,000 = 1.6×.
What is the difference between equity multiple and IRR?
The equity multiple shows how much money you make in total but ignores time. IRR is an annual rate that accounts for when the cash arrives. A 2.0× over 3 years is far better than 2.0× over 10 years, which IRR captures, so investors look at both.
What is a good equity multiple?
It depends on the hold period and risk. As a reference, doubling your money (2.0×) in 5 years with all cash at the end equals about a 14.9% IRR, and 1.5× over 5 years is about 8.4%. Compare deals with similar hold periods and risk.
Is equity multiple the same as MOIC?
They are calculated the same way: total value returned divided by capital invested. MOIC (multiple on invested capital) is the term used more in private equity, and it may include unrealized value, while real estate sponsors usually quote the equity multiple on actual distributions.
How are capital calls handled?
Extra contributions after the start are added to the equity invested. Enter them as negative numbers in the year they happen, and the calculator adds them to the denominator and includes them in the IRR.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.