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Equity Multiple Calculator

Compare total equity distributions, including returned capital, with total equity contributions.

Your assumptions

INDICATIVE RESULT
1.90x
Net profit€4,500,000

Calculated directly from the assumptions shown.

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FORMULA

How the Equity Multiple calculation works

Equity multiple = total equity distributions ÷ total equity contributions.

Example calculation

€5.0m contributed and €9.5m distributed produces a 1.90x equity multiple.

INVESTMENT USE

How professionals use the result

Use equity multiple to understand total money returned. It does not measure timing, so pair it with IRR.

Common mistakes

  • Excluding returned capital from distributions
  • Using only the initial contribution when later calls exist
  • Treating 2.0x as a 200% profit
  • Ignoring time to realisation
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CLEAR ANSWERS

Equity Multiple Calculator FAQs

What does the Equity Multiple calculator measure?

Compare total equity distributions, including returned capital, with total equity contributions.

What formula does the Equity Multiple calculator use?

Equity multiple = total equity distributions ÷ total equity contributions.

Is the result suitable for a final investment decision?

Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.

Do I need an account?

No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.

Is any input sent publicly?

No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.

Why might my spreadsheet give a different answer?

Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.

What should I review alongside this result?

Use equity multiple to understand total money returned. It does not measure timing, so pair it with IRR.

Which mistakes are most common?

Excluding returned capital from distributions; Using only the initial contribution when later calls exist; Treating 2.0x as a 200% profit; Ignoring time to realisation.

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