Equity Multiple Calculator

Work out equity multiple instantly with clear inputs, formula shown and shareable results.

About Equity Multiple Calculator

Equity multiple is total cash returned divided by equity invested, so a multiple of 3.0 means three dollars back for every dollar in. It ignores timing, which is why it is always quoted alongside an internal rate of return: converting the multiple to an annualised rate over the hold period shows what the timing is worth.

Formulas

Equity multiple

Multiple = total distributions / equity invested

Annualised

Annual return = multiple^(1/years) - 1

Worked example

With the default values below, Equity Multiple Calculator returns Equity multiple of 3.0000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total cash distributedminimum 0: 18,000,000
Equity investedminimum 0.01: 6,000,000
Holding periodminimum 0.25 years: 5 years

Results

Equity multiple: 3.0000
Total profit: $12,000,000.00
Annualised return: 24.57% %
Average profit per year: $2,400,000.00

Step by step

1Values used
2Equity multiple
3Annualised
4Equity multiple= 3.0000
5Total profit= 12,000,000.00
6Annualised return= 24.57 %
7Average profit per year= 2,400,000.00

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Equity Multiple figure worked out?

Multiple = total distributions / equity invested. Equity multiple is total cash returned divided by equity invested, so a multiple of 3.0 means three dollars back for every dollar in.

Which matters more, multiple or IRR?

Both. A high IRR from a quick flip can produce a small multiple, and a strong multiple over fifteen years can be a mediocre IRR. Investors with capital to redeploy favour IRR; those seeking absolute wealth favour the multiple.

What values do I need to enter?

This calculator takes 3 inputs: Total cash distributed, Equity invested, Holding period. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.