Tools › Equity Multiple
Free Tool

Equity multiple calculator.

Equity multiple answers a blunt question: for every dollar in, how many come back? It ignores timing (that’s what IRR is for) but tells you the raw total return over the hold.

$
$
yrs
$
Equity multiple
—
Total cash returned
—
Total profit
—
Equity multiple = total cash returned ÷ equity invested. A 2.0x means you doubled your money over the hold. It says nothing about how long that took — a 2.0x in 3 years is excellent; the same 2.0x in 12 years is mediocre. Read it alongside IRR.

The bluntest return question

The equity multiple strips a deal down to its bluntest question: for every dollar in, how many come back? It is total cash returned — every year’s cash flow plus net sale proceeds — divided by the equity you invested. A 2.0x means you doubled your money. What it deliberately ignores is time, which is why it is the natural companion to IRR.

Example. You invest $850,000 and, over a five-year hold, collect $235,000 in cumulative cash flow plus $1,100,000 at sale — $1,335,000 total. That is a 1.57x equity multiple. Strong or weak depends entirely on the hold: a 1.57x in three years is excellent; the same multiple over twelve years is poor.

Frequently asked questions

What is equity multiple?
Equity multiple is the total cash an investor receives (annual cash flow plus net sale proceeds) divided by the equity they put in. A 1.8x equity multiple means $1.80 came back for every $1.00 invested over the hold period.
What is a good equity multiple?
Many commercial investors look for roughly 1.5x–2.5x over a typical 5–7 year hold, but it depends entirely on the hold length and risk. Always pair it with IRR — equity multiple shows total return, IRR shows how fast you got it.
Equity multiple vs IRR?
Equity multiple ignores time; IRR is time-weighted. A deal can have a great IRR but a small equity multiple (quick, small win) or a strong multiple with a modest IRR (slow, large win). Sophisticated buyers look at both together.

Want these numbers pressure-tested?

Send it over and I'll sanity-check the assumptions against real South Florida comps and terms — and flag what a broker would push on. Free, and as your rep I'm paid by the other side, not you.

Free — add your name & email in the form above, then download a Mattis-branded one-pager.
IRR CalculatorCash-on-CashDeal AnalyzerAll Tools

Estimates are for planning only and use simplified assumptions — not tax, legal, or investment advice. Verify with your lender, CPA, and a full broker analysis before acting.