Equity Waterfall Calculator

Investor Capital

Preferred Return (%/yr)

Years Held

Return-of-Capital Multiple

Investor Split After the Tier (%)

Equity Proceeds at Exit

Investors Take

$830,599

2.77x their capital, about 22.6% a year

You Take

$1,169,401

58.5% of all proceeds

Their Priority Tier

$440,798

Capital times the multiple, plus the accrued preferred

Your First Dollar

$440,798

The exit above which any proceeds reach you

The same structure at half, full, and one and a half times the exit
Scenario	Exit Proceeds	Investors	You	Your Share
Downside (0.5x)	$1,000,000	$580,599	$419,401	41.9%
Your Exit	$2,000,000	$830,599	$1,169,401	58.5%
Upside (1.5x)	$3,000,000	$1,080,599	$1,919,401	64%

The priority tier is fixed, so upside accrues disproportionately to you, and downside falls on you first. That asymmetry is the deal.

The address encodes your inputs, so the link restores this scenario.

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