FREE EQUITY CALCULATOR
Real Estate Promote Calculator
Calculate sponsor promote from residual profit and promote percentage.
INDICATIVE RESULT
€400,000Investor residual share€1,600,000
Promote percentage20.00%
Calculated directly from the assumptions shown.
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How the real estate promote calculation works
Sponsor promote = residual profit above the hurdle × promote percentage.
Example calculation
€2.0m of residual profit subject to a 20% promote creates €400k of sponsor promote.
INVESTMENT USE
How professionals use the result
Use this for a simple promote estimate. A real waterfall usually applies tiered sharing to dated cash flows.
Common mistakes
- Applying promote to returned capital
- Ignoring hurdle timing
- Counting sponsor pro-rata share as promote
- Using project profit instead of distributable residual
CLEAR ANSWERS