Definition
Cash multiple is simple return metric (total cash returned divided by investment). A 2.0x multiple means you doubled your money—but timing matters.
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Find my pathAbout this term
Cash multiple is simple return metric. 1.0x = break-even, 2.0x = double money. Straightforward to understand and communicate. Does not account for time (time value of money). Example: $100,000 investment returns $180,000 = 1.8x cash multiple. Often expressed as moic (money on invested capital). Used alongside IRR for complete picture. Higher multiples over longer periods are less attractive than higher multiples over short periods. Essential but incomplete metric without timing consideration.
Pro Tip
Use cash multiple alongside IRR. High multiple over long period may be poor return.
Example
Investment returned 1.75x cash multiple over 5-year hold period.