MOIC Calculator

Enter Investment Details

Invested Capital

Total equity capital invested

Distributions Received

Cash returned to investors to date

Residual Value (NAV)

Current fair value of unrealized holdings

Holding Period

years

Years from initial investment to measurement date

Formula Reference

MOIC = (Distributions + Residual) / Invested Capital

Implied CAGR = MOIC^(1/Years) - 1

Calculator by Ryan O'Connell, CFA

Results

MOIC (Multiple on Invested Capital) 2.30x Strong Return

MOIC	2.30x
Realized Multiple	1.50x
Unrealized Multiple	0.80x
Total Gain / (Loss)	$1,300,000
Implied CAGR	23.1%

Implied CAGR assumes single start/end date. For precise returns with interim cash flows, use the IRR calculator.

Formula Breakdown

Model Assumptions

Gross returns: Results are gross of management fees, carried interest, and fund expenses. Net LP returns will be lower.
Equity-level values: All inputs are equity values, net of debt. Enterprise value is not modeled.
Residual value: Taken at face value as entered. No illiquidity discount applied.
Implied CAGR: Treats all capital as deployed on a single start date and all value as realized on a single end date. Ignores interim cash-flow timing.
No inflation adjustment: All figures are in nominal terms.
Single investment: Models one deal in isolation. Fund-level returns require aggregation.

Understanding MOIC in Private Equity

What is MOIC?

MOIC (Multiple on Invested Capital) measures the total value generated by a private equity investment relative to the capital invested. A MOIC of 2.0x means the investment returned twice the original capital.

At the fund level, a similar metric called TVPI (Total Value to Paid-In) aggregates MOIC across all portfolio companies.

MOIC vs IRR

MOIC measures magnitude (how much was multiplied), while IRR measures annualized rate accounting for cash-flow timing. A 3.0x MOIC over 10 years has a lower IRR than a 2.0x MOIC over 3 years.

The implied CAGR in this calculator approximates annualized returns but assumes all cash flows occur at start and end dates.

Realized vs Unrealized

The realized multiple (analogous to DPI at fund level) represents cash already returned. The unrealized multiple (analogous to RVPI) represents the estimated value of holdings not yet exited.

Early in a fund's life, unrealized value dominates. As exits occur, realized value grows and provides more certainty.

Interpreting Results

There's no universal "good" MOIC - it depends on strategy, vintage year, and holding period. Buyout funds often target 2.0x+, while VC funds may target higher multiples given their risk profile.

Always evaluate MOIC alongside IRR and consider whether returns are gross or net of fees.

Frequently Asked Questions

MOIC (Multiple on Invested Capital) is a deal-level metric measuring the ratio of total value received or expected - including cash distributions and residual NAV - divided by the total capital invested. A MOIC of 2.30x means an investor received $2.30 for every $1.00 invested. At the fund level, a similar metric called TVPI (Total Value to Paid-In) aggregates across all portfolio companies. MOIC is one of the core performance metrics used by private equity and venture capital funds to communicate returns to limited partners, alongside IRR, DPI, and RVPI.

There is no universal answer - "good" depends on strategy, stage, vintage year, holding period, and whether the metric is gross or net of fees. As very rough directional guidance for gross deal-level returns: buyout investments often aim for multiples above 2.0x, while venture capital deals may target higher multiples given their higher failure rate. A MOIC below 1.0x means capital was lost. These are not institutional benchmarks; actual performance varies widely.

The realized multiple measures cash already returned to investors: distributions divided by invested capital. At the fund level, this is analogous to DPI (Distributions to Paid-In). The unrealized multiple measures the current fair value of holdings not yet sold: residual NAV divided by invested capital. At the fund level, this is analogous to RVPI (Residual Value to Paid-In). MOIC is the sum of both (analogous to fund-level TVPI). Early in a fund's life, unrealized value dominates; as exits occur, realized value grows.

MOIC measures the total magnitude of return (how many times capital was multiplied), while IRR measures the annualized rate of return accounting for the exact timing of each cash flow. The implied CAGR shown in this calculator is a simplified approximation: CAGR = MOIC^(1/Years) - 1. This formula treats all capital as deployed on day one and all value as realized on a single end date. For deals with multiple cash flows at different points in time, implied CAGR will differ from the true IRR. Use the IRR calculator for precise annualized returns.

Residual value, also called Net Asset Value (NAV) or unrealized value, is the general partner's mark-to-market estimate of the current fair value of investments that have not yet been sold. For a single deal, it represents the estimated equity value of the remaining position, net of any debt. It is typically updated quarterly using valuation methodologies such as comparable company analysis, precedent transactions, or discounted cash flow analysis. Residual value is inherently an estimate and may differ significantly from ultimate realized proceeds. Zero residual can mean either a fully exited position or a fully written-down investment.

No - MOIC cannot be negative because invested capital (the denominator) is always positive and distributions and residual value are both floored at zero. However, MOIC can be less than 1.0x, which means total value (distributions + NAV) is less than capital invested, representing a loss of capital. Total Gain in dollar terms will be negative in that scenario. A MOIC of 0.0x would mean complete loss of both distributed proceeds and residual value - the investment returned nothing.

Enter Investment Details

Formula Reference

Results

Formula Breakdown

Model Assumptions

Understanding MOIC in Private Equity

What is MOIC?

MOIC vs IRR

Realized vs Unrealized

Interpreting Results

Frequently Asked Questions

What is MOIC in private equity?

What is a good MOIC for a private equity investment?

What is the difference between realized and unrealized multiples?

How does MOIC relate to IRR and implied CAGR?

What is residual value (NAV) in private equity?

Can MOIC be negative?

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