Metrics
Equity Multiple
Total cash returned (cash flow + net sale proceeds) ÷ total cash invested. 2.0× means you doubled your money over the hold.
There is no universal target or hold period. The result depends on the full modeled cash-flow and sale assumptions and should be reviewed with IRR and downside scenarios.
How it's calculated
Equity Multiple = Total Cash Returned ÷ Total Cash InvestedExample
Invest $80k, collect $70k of cash flow over 10 years, then net $120k at sale → ($70k + $120k) ÷ $80k = 2.4×.
Why Equity Multiple matters
Unlike IRR, the equity multiple ignores timing and answers the blunt question: how many times did I get my money back? Read the two together — IRR is the speed of the return, the multiple is its size.
Related terms
IRR (Internal Rate of Return)
Annualized return over the full hold period, including cash flow, principal paydown, appreciation, a…
Cash-on-Cash Return
Annual cash flow ÷ total cash invested (down payment + closing + rehab). Tells you how hard your mon…
Monthly Cash Flow
Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month…
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Where Equity Multiple shows up in TrueCap
The analyzer computes this metric on every run from the assumptions you see and can edit, shows it in the results view beside cash flow after reserves and DSCR, and uses your targets for it in Buy Box fit and in the Offer Ceiling — the highest price that still meets those targets. It appears in the written decision memo and the PDF with the same value and the same inputs.