There are 9 fields that can be changed by the user:
* The ‘Per Year Investor Return’ figure. This is where the per year return for each investor is input. Start-up ventures might use a number from 35-50%. Existing businesses might use 20-40%. The more risky the venture the higher the return should be.
* Fields for the Initial, Year 1, Year 2, Year 3, Year 4, and Year 5 Investments. These fields can be filled in with the amount of investment received in each year.
* The ‘5th Year Company Earnings’ would be found on your income statement. Net Income in the 5th year could also be used here. You must have 5 years of projections for this calculation to work properly. Butler Consultants Financial Statements can be used to obtain this number.
* The ‘5th Year Multiple’ is the value the company could be sold for in the 5th year. This can be obtained by looking at similar company’s P/E ratios. Your company will not likely sell for as high as a publicly traded company P/E ratio. Try using somewhere around 50% of industry P/E.

Other Notes:
* ‘Years Invested’ accounts for the number of years your company holds and investors money.
* ‘Investment Multiple’ is based on the Per Year Investor Return and Years Invested. It assumes that the Investment is compounding yearly.
* ‘5th Year Value’ is the Investment amount times the Investment Multiple.
* ‘Company Share’ is the percent of the company each Investment would account to.
* ‘5th Year Company Value’ is the value of your company in the 5th year.