MOIC Calculator
Calculate your Multiple on Invested Capital instantly. Understand the true return on your investments with professional-grade metrics.
Results
MOIC
2.50x
Strong return: You've received 250% of your initial investment back
- Total return
- 150.0%
- (Value - invested) / invested
- Annualized return
- 20.1%
- MOIC^(1 / years) - 1
- Net profit or loss
- $1,500,000
- Value - invested
Every $1 invested turned into $2.50. Spread over 5 years with one entry and one exit, that is 20.1% a year.
- Invested
- Value returned
Track MOIC across your entire portfolio
Get comprehensive insights into your investment performance with Raziel: MOIC, IRR and TVPI for every position, kept current.
The math
What is MOIC (multiple on invested capital)?
MOIC (Multiple on Invested Capital), also known as the "money multiple," is a key metric used by investors to measure the return on invested capital. It represents the total value of distributions received relative to the initial investment amount. Unlike internal rate of return (IRR), MOIC does not account for the time value of money, making it a straightforward way to evaluate how many times your initial investment has been returned.
MOIC is widely used in private equity, venture capital, real estate, and other alternative investment strategies to quickly assess investment performance. A MOIC greater than 1.0x means you've received more money back than you invested, while a MOIC less than 1.0x indicates a loss.
Calculating MOIC is straightforward. The formula divides the total value returned (distributions plus residual value) by the initial investment. The same ratio is also called the money multiple, investment multiple or, in real estate, the equity multiple. In the example below, the investor received 3 times their initial capital, resulting in a 3.0x MOIC. This is generally considered an excellent return in most investment categories.
- Total distributions: cash returned to investors through dividends, exit proceeds, or liquidations
- Residual value: the remaining value of the investment (unrealized gains in ongoing positions)
- Initial investment: the original capital deployed into the investment
How to calculate MOIC step by step
- Add up every dollar you invested, including follow-on checks.
- Add up every dollar you have received back: exit proceeds, dividends and other distributions.
- Add the current value of anything you still hold (the latest mark or NAV).
- Divide the total from steps 2 and 3 by the total from step 1.
MOIC = (Total distributions + Residual value) / Initial investment Initial investment: $1,000,000 Distributions received: $2,500,000 Residual value: $500,000 MOIC = ($2,500,000 + $500,000) / $1,000,000 = 3.0x
Assumptions and simplifications
- The annualized return assumes one investment at the start and one exit at the end. With several checks or distributions, use the IRR calculator or the XIRR calculator.
- Fees, carry and taxes are only included if they are already reflected in the numbers you enter.
Worked example
Using the default inputs
- Invested
- $1,000,000
- Distributions and current value
- $2,500,000
- MOIC
- $2,500,000 / $1,000,000
- Total return
- 150.0%
- Annualized over 5 years
- 20.1%
MOIC reference
Converting and comparing MOIC
IRR to MOIC converter
Know the annual return and the holding period? Enter them to see the multiple they compound to. This assumes one investment at the start and one exit at the end.
MOIC to IRR table
The same multiple is worth very different annual returns depending on how long it took. Each cell is the IRR implied by a MOIC over a holding period, using IRR = MOIC1/years - 1 with one cash outflow at the start and one inflow at the end.
| MOIC | 3 years | 4 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|---|
| 1.5x | 14.5% | 10.7% | 8.4% | 6.0% | 4.1% |
| 2x | 26.0% | 18.9% | 14.9% | 10.4% | 7.2% |
| 2.5x | 35.7% | 25.7% | 20.1% | 14.0% | 9.6% |
| 3x | 44.2% | 31.6% | 24.6% | 17.0% | 11.6% |
| 4x | 58.7% | 41.4% | 32.0% | 21.9% | 14.9% |
| 5x | 71.0% | 49.5% | 38.0% | 25.8% | 17.5% |
| 10x | 115.4% | 77.8% | 58.5% | 38.9% | 25.9% |
Real investments rarely have a single entry and exit. Follow-on checks, partial sales and distributions over time change the IRR, so use the IRR calculator or the XIRR calculator when you have dated cash flows.
IRR from MOIC formula
To turn a multiple into an annual return, take the root of the multiple for the number of years and subtract one. To go the other way, compound the IRR.
IRR = MOIC^(1 / years) - 1 MOIC = (1 + IRR)^years 2x in 5 years: 2^(1/5) - 1 = 14.9% 3x in 5 years: 3^(1/5) - 1 = 24.6% 3x in 7 years: 3^(1/7) - 1 = 17.0%
How to calculate MOIC in Excel
Excel and Google Sheets have no MOIC function, but you only need a division. With invested capital in B1, total value (distributions plus remaining value) in B2 and the holding period in years in B3:
MOIC: =B2/B1 IRR from MOIC: =(B2/B1)^(1/B3)-1 Built-in IRR: =RRI(B3,B1,B2) Dated flows: =XIRR(values, dates)
Format the MOIC cell with a custom number format such as 0.00"x" so it reads 2.50x. If you invested in several tranches, sum all contributions in B1 and all distributions plus current value in B2.
MOIC vs IRR: key differences
While MOIC and IRR are both important investment metrics, they measure different aspects of performance. Understanding the distinction is crucial for making informed investment decisions.
| Aspect | MOIC (money multiple) | IRR (internal rate of return) |
|---|---|---|
| Time consideration | Does not account for timing of returns | Accounts for when money is invested and returned |
| Calculation | Simple division of total returns by capital invested | Complex calculation using cash flows and discount rates |
| Use case | Quick assessment of absolute return multiples | Compare returns accounting for investment duration |
| Format | A multiple, such as 2.5x | An annual percentage, such as 20% |
| Investor focus | Venture capital and private equity summary metrics | Institutional investors requiring precise comparisons |
Example: Two investments might have the same MOIC but very different IRRs depending on how quickly returns were received. An investment that doubles your money in 1 year has a much higher IRR than one that doubles your money over 10 years, even though both have a 2.0x MOIC. For a deeper comparison, read MOIC vs IRR.
MOIC vs TVPI
MOIC and TVPI (total value to paid-in capital) use the same math: total value divided by capital. The difference is where they are used. MOIC is usually quoted for a single deal or a single investor's position and is often gross of fees. TVPI is the fund-level number LPs see: distributions plus NAV divided by paid-in capital, which includes management fees, so it is normally reported net.
TVPI also splits into DPI (the realized part) and RVPI (the unrealized part). See TVPI vs MOIC for the full breakdown, or run your fund numbers through the TVPI and DPI calculator.
Gross vs net MOIC
Gross MOIC measures the investment itself, before management fees, carried interest and fund expenses. It is how a fund manager shows the performance of individual deals. Net MOIC is what the investor actually keeps after those costs, so it is always lower than gross for a fund with fees and carry. When you compare managers, make sure both numbers are on the same basis. The carried interest calculator shows how fees and carry move gross MOIC to net.
Levered MOIC comes up in buyouts and real estate. It measures the multiple on the equity after debt is used, while unlevered MOIC measures the asset as if it were bought with all equity. Leverage raises the multiple when the asset performs and deepens the loss when it does not.
Realized vs unrealized MOIC
- Realized MOIC: cash actually received from exits and distributions, divided by the capital invested in those positions.
- Unrealized MOIC: the current fair value of positions you still hold, divided by the capital invested in them. It is an estimate until those positions are sold.
- Total MOIC: realized plus unrealized value, divided by all capital invested. This is what the calculator above shows when you include current value in the total.
Can MOIC be negative?
No. MOIC divides total value by invested capital, and the value of an equity investment cannot go below zero, so the lowest possible MOIC is 0x, a total loss. A MOIC between 0x and 1.0x means you lost part of your capital, exactly 1.0x means you broke even, and anything above 1.0x is a gain. Returns expressed as a percentage, such as IRR or total return, can be negative; the multiple cannot.
What is a good MOIC?
A good MOIC depends on the strategy, the risk taken and how long the money was tied up. Two peer-reviewed surveys of professional investors give a sense of the targets they set when they make a deal:
-
Private equity (buyouts)
2.5xMedian target gross MOIC in a survey of private equity investors (mean 2.85x). The authors note 2.5x over five years implies roughly a 20% gross IRR.
Source: Gompers, Kaplan and Mukharlyamov, Journal of Financial Economics (2016)
-
Venture capital
5.0xMedian target multiple in a survey of venture capitalists (mean 5.5x), with an average target IRR of 31%.
Source: Gompers, Gornall, Kaplan and Strebulaev, Journal of Financial Economics (2020)
Key takeaways
- A MOIC above 1.0x indicates positive returns; below 1.0x indicates a loss
- These are targets at the time of investment, not typical or guaranteed outcomes; actual results vary widely by deal and by fund
- In these surveys, venture capitalists target about twice the multiple that buyout investors do
- Longer holding periods need higher multiples to deliver the same IRR; check the MOIC to IRR table above
- Compare gross with gross and net with net
MOIC in venture capital and private equity
MOIC is the dominant metric used by venture capital and private equity firms to evaluate fund performance. It provides an immediate, intuitive understanding of how much value has been created or destroyed relative to capital invested.
Why VCs use MOIC
- Simplicity: easy to calculate and understand across diverse portfolio companies
- Portfolio impact: quickly shows which investments are driving fund returns
- Fundraising: presented prominently in LP presentations and marketing materials
- Milestone tracking: MOIC can be calculated at any point in an investment lifecycle
- Board reporting: standard metric for tracking investment progress
MOIC across investment stages
VC returns vary significantly by stage. Early-stage (Seed/Series A) investments are riskier but can produce exceptional multiples when successful. Late-stage investments offer lower risk but more modest return expectations, because the entry valuation is higher and the company is closer to an exit.
Private equity perspective
Private equity firms use leverage and operational improvements to grow equity value over a multi-year hold. In the survey cited above, buyout investors reported a median target of 2.5x, and a fund's results are often benchmarked against peer funds and public equity indexes.
- Debt paydown during the hold adds to the equity multiple in a leveraged buyout
- Management buyouts often lean on cost reduction and operational changes
- Add-on acquisitions in platform companies can accelerate MOIC through synergies
- PE funds publish MOIC metrics for realized, unrealized, and gross (pre-fee) returns
Frequently Asked Questions
Common questions about the MOIC calculator and the math behind it.
What is MOIC in private equity?
What is the MOIC formula?
MOIC = (realized value + unrealized value) / invested capital. Realized value is cash distributed or received from exits; unrealized value is the current fair value of the holdings you still own. Example: $1M invested, $2.5M distributed and $500K still held gives ($2.5M + $0.5M) / $1M = 3.0x.
How do you convert MOIC to IRR?
For a single investment and a single exit, IRR = MOIC^(1 / years) - 1. A 2x MOIC over 5 years is 2^(1/5) - 1 = 14.9% a year; a 3x over 5 years is 24.6%. To go the other way, MOIC = (1 + IRR)^years. When cash moves in and out on several dates, use an IRR or XIRR calculation on the actual cash flows instead.
What is a good MOIC in private equity?
It depends on the strategy and holding period. In a survey of private equity investors published in the Journal of Financial Economics (Gompers, Kaplan and Mukharlyamov, 2016), the median target was a 2.5x gross MOIC, which the authors note implies roughly a 20% gross IRR over five years. A companion survey of venture capitalists (Gompers, Gornall, Kaplan and Strebulaev, 2020) found a median target multiple of 5x. These are deal-level targets, not guaranteed or typical outcomes.
Can MOIC be negative?
No. MOIC divides total value by invested capital, and the value of an equity investment cannot fall below zero, so the lowest possible MOIC is 0x (a total loss). Anything between 0x and 1.0x is a loss; 1.0x means you got your money back; above 1.0x is a gain.
Is MOIC the same as TVPI?
They use the same math (total value divided by capital) but are applied differently. MOIC is usually quoted per deal or per investor and often gross of fees. TVPI is a fund-level LP metric that divides distributions plus NAV by paid-in capital, which includes management fees, so it is typically reported net. TVPI also splits cleanly into DPI (realized) and RVPI (unrealized).
How do you calculate MOIC in Excel?
Put invested capital in B1 and total value (distributions plus remaining value) in B2, then use =B2/B1 for MOIC. With the holding period in years in B3, =(B2/B1)^(1/B3)-1 or =RRI(B3,B1,B2) returns the implied annual IRR. For dated cash flows, use =XIRR(values, dates).
What is the difference between realized and unrealized MOIC?
Can MOIC be used to compare investments across different time periods?
While MOIC provides absolute return multiples, IRR is better for comparing investments with different time horizons. An investment that produces 2x in 1 year is dramatically better than one producing 2x in 10 years, but they have identical MOICs. For fair comparison across different investment durations, use IRR or annualized return percentage, which both accounts for timing.
Is a 2x MOIC good or bad?
A 2x MOIC is generally considered good, as it represents a 100% return on invested capital. However, the appropriate target depends entirely on your asset class, investment stage, and time horizon. Venture capital might consider 2x disappointing given the risk, while real estate investors would celebrate 2x as excellent. Consider the opportunity cost: could you have achieved 2x in a lower-risk asset? Compare against your benchmark and the specific investment's risk profile.
How do fees affect MOIC calculations?
MOIC can be calculated either gross (before fees) or net (after management and performance fees). Gross MOIC shows the underlying investment returns, while net MOIC shows what limited partners actually receive. For fund-level reporting, both metrics are typically provided. Management fees, carried interest, and other charges can significantly reduce net MOIC compared to gross. Always verify whether reported MOICs include or exclude fees.
What's the difference between MOIC and ROI?
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