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Equity Waterfall Calculator
An equity waterfall calculator splits a deal's proceeds between limited partners (LPs) and the general partner (GP) in tiers — return of capital, a preferred return, then a promote. Enter the equity, preferred return, promote, hold, and total exit distribution to see the LP and GP split, LP multiple, and LP IRR.
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GP promote
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Simplified single-hurdle European waterfall on a single terminal distribution (return of capital → accrued preferred → promote split). Real deals may add tiers, catch-up, and interim distributions.
Formula
Distribution → 1) Return of LP capital → 2) Accrued preferred return → 3) Residual split (GP promote %, LP the rest)
Frequently asked questions
- What is a typical preferred return and promote?
- A common structure is an 8% preferred return to LPs with a 20% GP promote above it, though pref rates and promote percentages — and the number of hurdles — vary widely by sponsor, strategy, and market.
- Is this a simplified waterfall?
- Yes. This calculator models a single-hurdle European waterfall on one terminal distribution: return of capital, then accrued preferred, then a promote split. Real deals may add multiple IRR hurdles, a GP catch-up, and interim distributions — all of which Origentic models natively.
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