On this page is a MOIC calculator, or Gross Multiple On Invested Capital calculator. Enter the amount a fund has returned and the current book value (before fees, carry, promote, or other costs), and the invested capital to calculate the multiple on invested capital.
Gross Multiple on Invested Capital Calculator
Using the MOIC Calculator
Before you can use the MOIC calculator, you'll have to gather a few inputs.
- Cumulative Distributions to Fund - distributions made to investors due to partial or full liquidity events.
- Current Fund Book Value - the marked book value of the remaining investment before any fees, expenses, carry, promote, or similar expenses.
- Invested Capital - the money invested in any deals in the fund plus any expenses used to make those investments (legal fees, transfer costs, etc.).
What is MOIC?
MOIC is the gross multiple on invested capital for a fund or investment. As it doesn't yet include any of the fund's costs to the end investors or limited partners – fees, expense, carry, promote, and so on – it's best used as a measure of the manager's, sponsor's, or general partner's investment performance (or skill, if you'll allow it).
MOIC in isolation isn't the best measure of an investment's performance since it ignores time or duration. A 2x MOIC in one year is – of course – more attractive than a 2x MOIC over the 10-year lifespan of a fund. You'll need to combine MOIC with other measures, such as the internal rate of return, to evaluate an investment's performance.
Additionally, you can break down MOIC into an unrealized MOIC and realized MOIC. The breakdown lets you separate historical payouts from future payouts.
MOIC in Investments
MOIC is an excellent measure for determining your GP's prowess when investing in a private fund – but isn't the best gauge of your (or a generic LP's) performance in a fund. Some alternatives are:
- TVPI (or Total Value to Paid-In Capital) which attempts to estimate the effects of fees on future distributions
- DPI (or Distributions to Paid-In Capital) which only counts distributions from the fund
You'll also (of course) want to look at IRR or internal rate of return to compare to your other investments. Multiples are a good bragging point, but IRR lets you compare to theoretical alternatives.
Other private investment and general calculators: