BizJourney
Home › Formulas › Equity multiplier

How to calculate Equity multiplier

The Equity multiplier formula, with plain worked examples you can check yourself.

Equity multiplier = A ÷ E

The result is a number in ×.

Worked examples

A = 300 · E = 100Equity multiplier = 3×
A = 2000 · E = 500Equity multiplier = 4×
A = 600 · E = 200Equity multiplier = 3×

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Financial Statements.

Related terms

EquityBalance sheetIncome statementAssetsLiabilitiesCash flow statement

Practice Equity multiplier with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →