Multiple on Invested Capital (MOIC) Calculator

What is MOIC?

MOIC stands for multiple on invested capital. It is the simplest possible return measure: everything you got back divided by everything you put in. Invest 100, receive 250, and your MOIC is 2.5x. You may also see it called the "money multiple" or, for a fund, TVPI. On its own, MOIC says nothing about time, so the calculator also converts it into an implied annual return (IRR) for the holding period you enter.

When do you use it?

MOIC is the language of private equity and venture capital. Sponsors quote target multiples ("we want 2.5x in five years"), investment committees compare deals on MOIC and IRR side by side, and fund reports show the multiple for every company held. It is also useful in M&A and corporate finance as a quick check on whether an investment paid off in absolute terms.

How to read the output

With the example inputs (100 invested, 250 back after five years), the MOIC is 2.5x, the gain is 150 and the implied annual return is 20.1%. A MOIC below 1.0x means you lost money. In buyouts, 2.0x to 3.0x over four to six years is a common target; the fictional Harbour Packaging LBO reaches 2.09x and a 15.9% IRR in five years.

Time is what turns a multiple into a good or bad result. The same 2.5x earned in three years is about 36% a year; spread over eight years it is only about 12%. This calculator has no sensitivity table; instead, the reference table plays the same role. Each row is a multiple and each column a holding period, and the cells show the annual return. Use it to see how quickly returns fade when an exit is delayed: a deal that slips by two years can lose nearly a third of its IRR.

Common mistakes

• Ignoring the holding period. A big multiple over a long time can be a weak return.
• Leaving out interim cash. Dividends or partial sales received along the way belong in total proceeds.
• Forgetting fees and extra investments. Follow-on equity injections and transaction costs should be in equity invested.
• Comparing gross and net figures. Fund results after fees and carried interest are lower than deal-level multiples.

Limitations

The implied IRR assumes a single payment in at the start and a single payment out at the end. If cash comes back in stages, the real IRR will differ, sometimes a lot; use the IRR and NPV calculator for that. MOIC ignores risk and the cost of capital, so a 2x on a safe asset and a 2x on a risky start-up look the same.

FAQ

Is a higher MOIC always better?

For the same holding period, yes. Across different periods, compare the IRR as well.

Can I enter half years?

Yes. Fractions such as 2.5 years are allowed.

Why do funds like MOIC?

Investors cannot spend a percentage; MOIC shows how much money was actually made. IRR can look high on a quick, small win.

Educational use only. Not financial advice. Exact formulas: see the Methodology page