Advanced investment analysis

Preferred Return Waterfall Calculator

Split project profit after return of capital and a preferred return. Enter your own assumptions and local rates.

What this calculator estimates

Split project profit after return of capital and a preferred return. It combines the inputs below to produce Investor total distribution. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces $1,316,000. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Investor equity — sample input: 800000 currency units
• Sponsor equity — sample input: 200000 currency units
• Investor preferred return — sample input: 8 %
• Investment period — sample input: 5 years
• Total distributable cash — sample input: 1600000 currency units
• Investor share after preference — sample input: 70 %

How to interpret the result

Run downside, expected and upside cases before relying on the output. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not assume exit value, financing and income forecasts are certain. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.