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Equity Multiple

A ratio that shows the total return on your invested cash if you were to sell a property.

Cindy Bellford avatar
Written by Cindy Bellford
Updated over a week ago

What Is It?

A ratio that shows the total rate of return of a rental property based on comparing the total profit from your investment to the total invested cash.

The equity multiple takes into account the cumulative cash flow, equity accumulation and loan paydown, and shows the total cumulative return on your invested capital, if you were to sell the property at a given point in time.

The equity multiple is the same as the return on investment, except expressed as a ratio.

How Is It Calculated?

Equity multiple calculation formula

You can learn more about the Equity Multiple on our blog.

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