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Equity Multiple vs IRR Calculator
Equity multiple (MoIC) is cumulative — it tells you 'how much' you got back. IRR is velocity — it tells you 'how fast.' A 2.0x multiple earned in 3 years is a 26% IRR; the same 2.0x over 10 years is 7%. This calculator computes both and shows how hold period transforms the comparison.
Equity multiple (MoIC)
2
Implied IRR (at this hold)
14.87%
CAGR
14.87%
Simple annual return
20.00%
Total profit
$1,000,000
Years to this multiple @ 10% IRR
7.3
Years to this multiple @ 15% IRR
5
Years to this multiple @ 20% IRR
3.8
How the math works
Equity multiple = proceeds ÷ invested. IRR is the compounding annual rate that equates inflows and outflows. Multiple tells you 'how much,' IRR tells you 'how fast.' A 2.0x multiple could be a 14.9% IRR over 5 years or a 7.2% IRR over 10 years — same multiple, very different velocity.
Sponsors promoting a 2.0x multiple without specifying hold should raise alarms — longer holds dilute IRR even when multiples look identical. Always pair the two.
How to Use
- Enter initial equity invested.
- Enter total proceeds received.
- Enter hold period in years.
- Read both equity multiple and implied IRR.
Frequently Asked Questions
Which matters more?
Depends on your goal. IRR matters for velocity and capital recycling. Multiple matters for absolute wealth creation. Sponsors promote whichever is more flattering — ask for both.
Is CAGR the same as IRR?
Here yes — because all proceeds come at the end. In deals with interim distributions, IRR diverges: it measures the true time-weighted return while CAGR only captures start/end.
Good benchmarks?
Multifamily value-add: 1.8-2.2x over 5 years, 14-17% IRR. Core multifamily: 1.5-1.7x over 7 years, 8-10% IRR. Development: 1.8-2.5x over 3-4 years, 18-22% IRR.
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