Finance category
Mortgage, loan, investing, tax, and money calculators.
Cash-Out Proceeds Split Calculator
When a deal sells, proceeds flow through the waterfall — pay off debt, return capital, pay pref, split promote. This calculator runs all three tiers and returns LP total, GP total, and equity multiples for each — the final scorecard on the investment.
LP total
$5,085,000
GP total
$415,000
Net proceeds to equity
$5,500,000
Preferred return paid
$1,440,000
GP promote
$15,000
LP equity multiple
1.41
GP equity multiple
1.04
How the math works
Sale proceeds flow through a three-tier waterfall: net to equity after loan payoff, return of capital, pref to LP, then promote to GP. This calculator executes all three tiers and reports LP and GP take-home plus equity multiples.
Capital gain is taxable to LPs at capital gain rates — unless rolled into a 1031 exchange. Depreciation recapture at 25% federal on the depreciation portion. Plan tax treatment before closing.
How to Use
- Enter sale proceeds net of closing and loan payoff.
- Enter LP and GP capital outstanding.
- Enter pref owed to LP.
- Enter GP promote percentage.
- Read LP/GP take-home and equity multiples.
Frequently Asked Questions
Taxable?
Sale proceeds are taxable at capital gain rates (long-term if held > 1 year). Depreciation recapture at 25% federal on accumulated depreciation. 1031 exchange defers both if proceeds go into a replacement property within 180 days.
What about suspended losses?
Sale releases all suspended passive losses — LPs can offset capital gains with them. This is often a meaningful benefit for LPs who couldn't use losses during hold.
Clawback?
Some waterfalls include a clawback — if later deals underperform, promote taken on winning deals gets clawed back. Check the LPA carefully.
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