A return metric which shows how much an investor’s capital has grown over time. The equity multiple (EMx) is calculated by dividing the sum of all capital inflows (capital distributions) by the sum of all capital outflows (capital contributions). While the equity multiple does not account for the time value of money, it does describe the total cash returned to the investor and is thus often utilized alongside the internal rate of return in real estate investment analysis.

The Equity Multiple is typically used in conjunction with other return metrics such as Internal Rate of Return, Cash-on-Cash Return, Free and Clear Return, Average Rate of Return, among others. The equity multiple can be calculated before and after taxes and on an unlevered (without debt) or on a levered (with debt) basis.