Calculate equity multiple & payback for real estate investments and properties
Enter initial investment, annual cash flows, and final sale proceeds. The calculator computes equity multiple (total returns ÷ investment) and payback period.
Invest $250K, receive $120K in cash flows over 5 years, sell for $400K. Total $520K return ÷ $250K = 2.08x equity multiple.
Total cash returned to investor divided by initial investment. 2.0x means you doubled your money; 1.5x means you got back 150% of investment.
For 5-year hold, 1.5-2.0x is typical. Longer holds (7-10 years) should target 2.0-3.0x. Consider IRR alongside equity multiple for time value.
Number of years until cumulative cash flows equal initial investment. Shorter payback periods indicate faster capital recovery and lower risk.