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.
Metrics
How it's calculated
Equity Multiple = Total Cash Returned ÷ Total Cash Invested
Example
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…