JV Waterfall Calculator
Split available cash between LP and GP after preferred return and capital return.
The headline result is the LP total distribution after preference, capital return and residual sharing.
Continue in the full model.
Move from this screening result to the complete Real Estate JV Waterfall Model.
Get the model · €99 incl. VATHow the JV Waterfall calculation works
Cash first pays the accrued LP preferred return, then returns LP capital, then GP capital. Remaining cash is split at the selected LP/GP sharing ratio.
Example calculation
From €9m cash, pay €900,000 LP preference, return €4.5m LP capital and €500,000 GP capital, then split €3.1m residual 70/30. Total distributions are €7,570,000 to the LP and €1,430,000 to the GP.
How professionals use the result
Use this to understand waterfall order. Use the full workbook for dated contributions, multiple tiers, hurdle accrual and reconciliation.
Common mistakes
- Applying the promote before returning capital
- Ignoring GP capital
- Using project IRR instead of partner IRR
- Treating an annual hurdle as a flat percentage
JV Waterfall Calculator FAQs
What does the JV Waterfall calculator measure?
Split available cash between LP and GP after preferred return and capital return.
What formula does the JV Waterfall calculator use?
Cash first pays the accrued LP preferred return, then returns LP capital, then GP capital. Remaining cash is split at the selected LP/GP sharing ratio.
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 this to understand waterfall order. Use the full workbook for dated contributions, multiple tiers, hurdle accrual and reconciliation.
Which mistakes are most common?
Applying the promote before returning capital; Ignoring GP capital; Using project IRR instead of partner IRR; Treating an annual hurdle as a flat percentage.