Calculate total return on invested equity. See how many times your initial investment comes back to you through cash flows and sale proceeds over the entire hold period.
Total return on your invested equity
Want to structure deals for higher equity multiples?Our advisors optimize financing to maximize total returns.
Get Investment Analysis →The simplest way to measure total investment performance.
Equity Multiple = Total Cash Received ÷ Total Cash Invested. A 2.0x EM means you got back $2 for every $1 invested. Unlike IRR, EM doesn't account for time — a 2.0x over 3 years is much better than 2.0x over 10 years. That's why investors use both EM and IRR together.
EM tells you the total magnitude of return. IRR tells you the annualized rate. A 2.5x EM over 5 years ≈ 20% IRR. A 2.5x EM over 10 years ≈ 10% IRR. Same multiple, very different time-adjusted performance. Always evaluate both metrics together.
Core: 1.3–1.6x over 5–7 years. Core-Plus: 1.5–1.8x. Value-Add: 1.8–2.5x over 3–5 years. Opportunistic: 2.0–3.0x+. Fund investors and LPs typically look for minimum 1.5x over the fund life (7–10 years).
Three drivers: (1) Higher annual cash flow through NOI improvement and optimized debt structure. (2) Property appreciation through value-add improvements, rent growth, or cap rate compression. (3) Leverage — financing amplifies both cash flow and appreciation returns on invested equity.
Common questions about equity multiples in CRE.
Our advisors structure deals to maximize your equity multiple through optimized financing, value-add strategies, and timing.
Get Deal Analysis →