Work out equity multiple instantly with clear inputs, formula shown and shareable results.
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.
Equity multiple
Multiple = total distributions / equity invested
Annualised
Annual return = multiple^(1/years) - 1
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.
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.
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.