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Real Estate

Equity Multiple

Also called: MOIC, multiple on invested capital, equity multiple real estate

The equity multiple is total cash returned divided by cash invested — a 2.0× means you doubled your money. It's the honest companion to IRR, which can look spectacular on a fast flip that returned very little in absolute terms. Sponsors quote both because they answer different questions: IRR is speed, multiple is magnitude.

Formula

Equity multiple = Total distributions ÷ Total invested

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