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

You Take

$1,169,401

58.5% of all proceeds

Their Priority Tier

$440,798

Capital times the multiple, plus the accrued preferred

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.

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