Finance category
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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.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
How this calculator works
What this page estimates
This Cash-Out Proceeds Split Calculator is built to give a quick, browser-based estimate for cash-out proceeds split. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.
Calculation approach
The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.
Example workflow
For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.
Practical checks
- Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
- Run a low, base, and high case when the inputs are estimates.
- Check the related calculators below when the next decision depends on a different assumption.
How to interpret the cash-out proceeds split result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this cash-out proceeds split estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
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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