From annual target to cash flow
A practical guide to reading annual rates, distribution schedules and investment horizons.
Annual rates need a time period
At a target annual rate of 137%, the projected return on $1,000 is $1,370 over twelve months or $685 over six months using simple interest. The calculation excludes losses, expenses and taxes.
Distribution is not reinvestment
A monthly target distribution describes when cash may be payable under an agreement. It does not automatically mean that cash is reinvested. Compounding can materially change a projection and should never be introduced without an explicit assumption.
Read the agreement alongside the calculator
The agreement defines the term, payout conditions, fees, early exit rules and what happens when performance falls short. The calculator is a planning aid. Actual payments depend on the agreement and the performance of the business.
Explore the investment model