Equity Waterfall & Promote Calculator
Single-hurdle distribution waterfall: return of capital, pref, then the GP promote split — both sides' take from exit proceeds.
Formula
The promote is the GP's performance fee, earned only above the pref — the alignment mechanism of every syndication. Real waterfalls add catch-ups and IRR-tiered promotes (20% over 8%, 30% over 15%); model your deal's exact LPA language before wiring funds.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need equity waterfall & promote calculator results fast? Analysts, founders, traders and finance professionals use the Equity Waterfall & Promote Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Equity Waterfall & Promote Calculator
Single-hurdle distribution waterfall: return of capital, pref, then the GP promote split — both sides' take from exit proceeds. The promote is the GP's performance fee, earned only above the pref — the alignment mechanism of every syndication. Real waterfalls add catch-ups and IRR-tiered promotes (20% over 8%, 30% over 15%); model your deal's exact LPA language before wiring funds. The governing relationship is 1) return capital → 2) pay pref → 3) split residual (promote to GP). The Equity Waterfall & Promote Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Equity Waterfall & Promote Calculator
- 1Enter Total proceeds to distribute (currency), LP capital to return (currency), Accrued pref owed (currency), GP promote above pref (%), GP co-invest share of capital (%) into the Equity Waterfall & Promote Calculator.
- 2The result is computed automatically using 1) return capital → 2) pay pref → 3) split residual (promote to GP) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Equity Waterfall & Promote Calculator?
- ✓Computes equity waterfall & promote calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Equity Waterfall & Promote Calculator?+
Equity Waterfall & Promote Calculator uses 1) return capital → 2) pay pref → 3) split residual (promote to GP). The promote is the GP's performance fee, earned only above the pref — the alignment mechanism of every syndication. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Equity Waterfall & Promote Calculator need?+
Enter Total proceeds to distribute (currency), LP capital to return (currency), Accrued pref owed (currency), GP promote above pref (%), GP co-invest share of capital (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Equity Waterfall & Promote Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Equity Waterfall & Promote Calculator?+
Real waterfalls add catch-ups and IRR-tiered promotes (20% over 8%, 30% over 15%); model your deal's exact LPA language before wiring funds.
What is the Equity Waterfall & Promote Calculator based on?+
The method follows authoritative sources: ILPA waterfall structures; PERE market terms. The formula and references are shown on the page so you can verify and cite the result.
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