The Equity Multiple measures how much total cash an investor receives compared to the cash they invested.

Formula: Equity Multiple = Total Cash Received ÷ Total Cash Invested

Example: If you invest $100,000 and receive $200,000 back (including profit and return of capital): Equity Multiple = 2.0x

That means your money doubled over the investment period.

Why It Matters: While ROI measures percentage returns per year, Equity Multiple shows the total growth of your investment over time.

A 1.0x means you just broke even.

A 2.0x means you doubled your money.

It’s especially useful for comparing short-term flips vs. long-term rentals or value-add multifamily projects.

Investor Takeaway: Use the Equity Multiple alongside IRR and CoC return to gauge how efficiently your capital is working — and which deals are truly multiplying your wealth.