Equity Multiple (5-Year)

Total distributions over 5 years as a multiple of equity invested.

Example Result

Sample Data

1.21x

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

See Your Own Properties

With the Rental Property Calculator, you can run this calculation against your own rental properties using your real numbers.

View Pricing Sign In

40-Year Projection Chart

Subscribe to explore how equity multiple (5-year) evolves over a 480-month holding period.

View Pricing

Equity Multiple (5-Year) Formula

Total Distributions / Total Equity Invested

$135,056 / $110,830

1.21x

What This Means

A sample property priced at $385,000 with $2,850/month rent has a equity multiple (5-year) of 1.21x at Purchase (Month 0). In syndications and commercial deals, equity multiple is a standard benchmark. A 2.0x equity multiple over 5 years is considered strong. It tells limited partners exactly how much they can expect to receive for every dollar invested.

Where This Value Comes From

Equity Multiple (5-Year) is not entered directly — it is calculated from Total Cash Invested, Appreciation Rate, and Property Value. See the formula breakdown above and the detailed inputs below.

Inputs That Determine Equity Multiple (5-Year)

Total Cash Invested

Total cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.

$110,830

Purchase

Appreciation Rate

The expected annual property value appreciation rate.

Found on your fhfa house price index

3.00%

Purchase

Property Value

The current estimated market value of the property.

Found on your licensed appraisal

$385,000

Purchase

Platform Distribution

Unlock Platform Benchmarks

See the average, median, and where your property ranks among other investors on the platform.

Unlock Rental Property Calculator

Why It Matters

In syndications and commercial deals, equity multiple is a standard benchmark. A 2.0x equity multiple over 5 years is considered strong. It tells limited partners exactly how much they can expect to receive for every dollar invested.

Detailed Explanation

The Equity Multiple is a total return metric showing how many times over you get your initial equity back over the investment period. It is identical to Return Per Dollar and is the preferred term in commercial/syndication deals.