Free tool
Real estate waterfall calculator: LP and GP splits
Set the equity, the cash you expect back and your deal terms. See how each tier splits between LPs and the GP — instantly, with no sign-up.
Updated
Deal terms
To LPs
$17,860,000
LP multiple
1.88x
LP annualized*
13.5%
GP promote
$2,200,000
| Tier | LPs | GP |
|---|---|---|
| Return of capital | $9,500,000 | $500,000 |
| 8% preferred return | $4,458,617 | $234,664 |
| GP catch-up to 20% | $0 | $1,173,320 |
| 80/20 split to 2.0x LP multiple | $3,901,383 | $1,232,016 |
| Total | $17,860,000 | $3,140,000 |
Where the cash goes
GP multiple on its co-invest: 6.28x
*Annualized = LP multiple compounded over the hold, not an IRR (IRR depends on the timing of each cash flow). Illustrative only: a single class, a compounding pref with no interim distributions, and the GP's co-invest paid pro rata. The CREAssets engine handles multiple classes, IRR, cash-on-cash and ROC hurdles, and your operating agreement's actual terms.
New to waterfalls? Read how real estate waterfalls work or see how CREAssets runs waterfalls and distributions. Prefer a spreadsheet? Download the free Excel waterfall model.
Related calculators
- Waterfall model in Excel (free download)
A three-tier IRR-hurdle waterfall with live formulas — pref, two promote tiers, LP and GP IRR by year. No sign-up.
- Preferred return calculator
Simple vs compounding, cumulative vs non-cumulative, with yearly distributions — pref accrued, paid and still owed.
- IRR and equity multiple calculator
Enter equity, yearly cash flows and sale proceeds — get IRR, equity multiple, cash-on-cash by year and average annual return.
- Cash-on-cash return calculator
Annual pre-tax cash flow over total cash invested — the yield on your equity, with monthly cash flow.
About this calculator
What does this calculator assume?
One class of equity with the GP’s co-invest paid pro rata, a preferred return that compounds annually over the hold with no interim distributions, an optional 100% GP catch-up, and two promote tiers split at an LP equity-multiple hurdle.
Why is the annualized return not an IRR?
IRR depends on the timing of every cash flow. This calculator takes total cash returned, so it shows the LP multiple compounded over the hold instead. For IRR hurdles, the CREAssets engine uses your actual dated cash flows.
What is a GP catch-up?
After investors receive their preferred return, a catch-up gives the GP a larger share — here 100% — until the GP has received its promote percentage of all profits distributed so far.
Can I model my real operating agreement?
In CREAssets, yes: multiple classes, IRR, cash-on-cash, ROI and return-of-capital hurdles, and 23 templates to start from. Sign up free and enter your agreement’s terms, or send them to us.
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