How Do You Calculate the Return Multiple?

Short answer: Multiple = final value ÷ initial investment; return = (multiple − 1) × 100%. 2x equals +100%, 3x equals +200% and 10x equals +900%.

A multiple and a percentage are the same fact, written two ways

A multiple says "the position is now this many times my capital" — the capital is included in the number.

A percentage says "how much net profit, relative to capital" — the capital is not included. That is why the multiple minus one is the return.

Formulas

Return multiplefinal value ÷ initial investment
Return(multiple − 1) × 100%
Multiple from a return1 + return (as a decimal)

Worked example (recompute it yourself)

Invest 4,000 USDT; it grows to 10,000 USDT.

Multiple = 10,000 ÷ 4,000 = 2.5x; return = (2.5 − 1) × 100% = +150%.

The reverse checks out too: +150% is 1 + 1.5 = 2.5x.

Common conversions: 2x ↔ +100%, 3x ↔ +200%, 10x ↔ +900%, while 0.5x ↔ −50%.

Notes

A multiple carries no time information: doubling in one year and doubling in ten years are both 2x. To compare speed, annualise it.

On the loss side the multiple is below 1: 0.5x means half the capital is left, i.e. −50%.

This is arithmetic only, excludes fees, and says nothing about whether a price will ever reach that level.

FAQ

Does 3x mean a 300% gain?

No — it is +200%. A 3x multiple means the final value is three times the capital: one part is your capital back, two parts are the gain.

How do I turn a multiple into an annualised figure?

Convert the multiple into final value, then use CAGR = multiple^(1 ÷ years) − 1. A 2x over three years is about 25.99% a year.

What does 0.5x mean?

It means half the capital remains, a 50% loss. Any multiple below 1 is a loss.