Calculator
MOIC Calculator: Multiple on Invested Capital
MOIC (multiple on invested capital) is total value returned divided by total capital invested. Investing $1 million and getting back $2.5 million is a 2.5x MOIC. MOIC ignores timing, so it is read together with IRR or an annualized return.
Formula
How underwriters use it
MOIC is the cleanest way to see how much money a deal makes. Private equity and venture investors quote target MOICs alongside IRRs because a high IRR on a short hold can still produce a small absolute gain.
The annualized figure here assumes one investment and one exit; with interim distributions, compute a true IRR.
Frequently asked questions
Is MOIC the same as equity multiple?
They are used almost interchangeably. Equity multiple is the common term in real estate, MOIC in private equity, and both divide total distributions plus remaining value by total equity invested.
What is a good MOIC?
Buyout investors often target around 2.0x to 3.0x over a typical hold, and venture investors look for much higher multiples on winners to offset losses. The right target depends on hold period and risk.
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