How to calculate Money multiplier
The Money multiplier formula, with plain worked examples you can check yourself.
Money multiplier = 100 ÷ RR
The result is a number in ×.
Worked examples
RR = 20%Money multiplier = 5×
RR = 25%Money multiplier = 4×
RR = 25%Money multiplier = 4×
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Multiply by 100 to show the answer as a percentage.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Investing & Returns.
Related terms
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