ProFundraising · Simulator
LBO Returns Simulator
Model private-equity returns — MOIC and IRR.
Assumptions
Equity out
$42,119,763
MOIC
2.6x
IRR
21%
| Year | EBITDA | Exit EV | Equity Value |
|---|---|---|---|
| Year 1 | $5,400,000 | $48,600,000 | $24,600,000 |
| Year 2 | $5,832,000 | $52,488,000 | $28,488,000 |
| Year 3 | $6,298,560 | $56,687,040 | $32,687,040 |
| Year 4 | $6,802,445 | $61,222,003 | $37,222,003 |
| Year 5 | $7,346,640 | $66,119,763 | $42,119,763 |
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Built by The Crimson Bench · Educational model, not financial advice
About the LBO Returns Simulator
Enter entry EBITDA, multiple, leverage, growth, and exit multiple to project the equity return, MOIC, and IRR of a leveraged buyout.
It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.
How the LBO Returns Simulator Works
The model takes 6 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.
The Inputs
| Assumption | Example value |
|---|---|
| Entry EBITDA | $5,000,000 |
| Entry multiple | 8 |
| Debt % | 60% |
| EBITDA growth / yr | 8% |
| Exit multiple | 9 |
| Hold (years) | 5 |
Worked Example
Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.
Equity out
$42,119,763
MOIC
2.6x
IRR
21%
| Year | EBITDA | Exit EV | Equity Value |
|---|---|---|---|
| Year 1 | $5,400,000 | $48,600,000 | $24,600,000 |
| Year 2 | $5,832,000 | $52,488,000 | $28,488,000 |
| Year 3 | $6,298,560 | $56,687,040 | $32,687,040 |
| Year 4 | $6,802,445 | $61,222,003 | $37,222,003 |
| Year 5 | $7,346,640 | $66,119,763 | $42,119,763 |
The Operator's Read
Leverage magnifies returns: with 60% debt, a 2.6x equity return (21% IRR). Debt paydown and multiple expansion both add to this — and both cut the other way if things go wrong.
Assumptions & Limitations
- •The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
- •Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
- •It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
- •This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.
Frequently Asked Questions
What does the LBO Returns Simulator calculate?
Enter entry EBITDA, multiple, leverage, growth, and exit multiple to project the equity return, MOIC, and IRR of a leveraged buyout. It takes 6 assumptions — Entry EBITDA, Entry multiple, Debt %, EBITDA growth / yr, Exit multiple, Hold (years) — and returns Equity out, MOIC, IRR, along with a full projection table you can export.
How do I use the LBO Returns Simulator?
Enter your own figures in the input fields above — Entry EBITDA, Entry multiple, Debt %, and the rest. The model recalculates instantly and shows the resulting Equity out and full breakdown. No sign-up needed to run it.
Is the LBO Returns Simulator free?
Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.
What's the difference between this and a free calculator?
A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.
Who built the LBO Returns Simulator?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.
Is this financial advice?
No. The LBO Returns Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.
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The Crimson Bench · Est. 2002 · Founded in New York City
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