How to Calculate MOIC: Step-by-Step Guide with Examples

Formula

MOIC = (realized value + unrealized value) ÷ invested capital

Realized value

Cash already received from the investment: sale proceeds, dividends and interest.

Unrealized value

The estimated value of what is still held, as of a stated date.

Invested capital

The money put into the investment. For a gross MOIC, that is the cost of the shares. For a net one, it includes fees.

In Excel or Google Sheets, put invested capital in A2, realized value in B2 and unrealized value in C2. Then type =(B2+C2)/A2 and format the result with one or two decimals and an “x.” For many deals, sum each column first and divide the totals. Averaging the deal multiples gives a different, wrong answer, because it ignores deal size.

1. 1.0
   Total the money investedAdd up everything paid for the investment, including any follow-on purchases. Decide whether fees count: leave them out for gross MOIC, include them for net.
2. 2.0
   Total the cash receivedAdd up every payment back: sale proceeds, dividends, interest. This is the realized value.
3. 3.0
   Value what is leftTake the latest value of the unsold part, with its date. This is the unrealized value. For a private company, it is an estimate.
4. 4.0
   DivideMOIC = (cash received + value left) ÷ money invested.
5. 5.0
   Label itSay gross or net, the date of the value and how much of the result is realized. A 3.0x that is all unrealized is a different fact from a 3.0x in cash.

In private equity, MOIC is measured on the cash flows between the fund and the companies it buys. ILPA, a trade body for fund investors, says most managers show gross MOIC this way. Each deal counts from the date of investment (ILPA, 2025). Here is an illustrative fund that bought three companies:

For company A, there is nothing left to value. MOIC = $630,000 ÷ $200,000 = 3.15x, all realized. For company C, there is no cash yet. Its 3.00x rests entirely on an estimate of what the shares are worth. Both numbers are correct, but only one is money in hand.

For a whole fund, add up across deals before you divide. Then split the result the way ILPA’s template does, into sold, unsold and total:

• Total portfolio$1,550,000 ÷ $680,000 = 2.28x
• Realized portfolio, A and B$950,000 ÷ $480,000 = 1.98x
• Unrealized portfolio, C$600,000 ÷ $200,000 = 3.00x

The split tells you how much of the 2.28x is already cash. Here the sold deals earned less than the one still held. ILPA does not define “realized” itself, so check how the fund draws the line. The multiple on investors’ money at fund level has its own name: TVPI, total value to paid-in. Its steps are in how to calculate TVPI.

Net MOIC is the multiple after fees, fund expenses and carry. For your own position, it is simple. Divide what you received plus what you still hold by everything you paid in, fees included. In the example, the investor paid in $800,000, of which $120,000 went to fees and expenses. Carry took $150,000. The investor ends with $1,400,000, so the net multiple is 1.75x.

For a single deal inside a fund, there is no exact answer, because fees are charged on the whole fund. ILPA calls deal-level net MOIC a “synthetic calculation.” You divide the fund’s net TVPI by its gross MOIC. Then you apply that ratio to each deal (ILPA, 2025). Here the ratio is 1.75 ÷ 2.28, about 0.77:

• Company A3.15x gross → 2.42x net
• Company C, still held3.00x gross → 2.30x net
• Realized portfolio1.98x gross → 1.52x net
• Total portfolio2.28x gross → 1.75x net, equal to the fund’s net TVPI

The full walk from gross to net is in MOIC vs TVPI. In a single-deal SPV, a company set up to hold one investment, there is only one deal. So your net MOIC is simply your own multiple after the SPV’s fees and carry.

A leveraged buyout (LBO) buys a company mostly with borrowed money. MOIC counts only the buyer’s own money, the equity. So you must subtract the debt at exit. Different kinds of buyouts are compared in LBO vs MBO.

1. 1.0
   EntryA company is bought for $500M: $200M of equity and $300M of debt.
2. 2.0
   ExitFive years later it sells for $800M. The company has paid its debt down to $150M.
3. 3.0
   Equity at exit$800M − $150M = $650M.
4. 4.0
   MOIC$650M ÷ $200M = 3.25x. As an IRR over five years, that is 26.6% a year.

Without debt, the same deal is $500M in and $800M out: 1.60x, or 9.9% a year. The debt doubled the multiple. It works the other way too. If the company sold for $150M, the lenders would take all of it, and the equity would be worth nothing. Without debt, the buyer would still get 0.30x back. These numbers are illustrative.

With one payment in and one payment out, MOIC and IRR convert directly. You need the holding period too. MOIC = (1 + IRR)^years.

• 20% a year for 5 years1.20⁵ = 2.49x
• 15% a year for 5 years1.15⁵ = 2.01x
• 25% a year for 4 years1.25⁴ = 2.44x

The reverse is IRR = MOIC^(1 ÷ years) − 1, as in the LBO above. For a fund with many payments, the shortcut breaks. Money goes in and out at different times, so you need both numbers from the full cash flow list. How to get the IRR from that list is in how to calculate IRR.

• Averaging deal multiplesA 5x on a small deal and a 1x on a big one is not a 3x fund. Sum first, then divide.
• Treating gross as your returnFees and carry sit between the deal and you. Ask for net.
• Ignoring the unrealized partValue still held is an estimate. Ask how much of the multiple is cash.
• Forgetting the debt in an LBOEquity value is enterprise value minus debt at exit. Using the sale price overstates MOIC.
• Ignoring timeA 2x over three years and a 2x over ten are very different results. Read IRR next to MOIC.

The arithmetic is simple. The inputs and their effects are where help pays off.

Valuations

The unrealized part rests on an estimate. If you plan to sell or borrow against a position, ask how the value was set.

Fees and carry

Net MOIC depends on how fees and carry are charged. A lawyer can read the fund or SPV documents with you. The carry mechanics are in carried interest.

Tax

MOIC is before your own tax. Each distribution has its own tax treatment. A tax adviser can show what the multiple means after tax.

MOIC

Multiple on invested capital: realized plus unrealized value, divided by the money put in.

Realized value

Cash already received from an investment.

Unrealized value

The estimated value of what is still held.

Gross

Before the fees, expenses and carry charged by the fund or SPV.

Net

After all fees and expenses the investor paid.

Carry

Carried interest: the manager’s share of profit, often 20%.

TVPI

Total value to paid-in: the net multiple on investors’ money at fund level.

LBO (leveraged buyout)

The purchase of a company paid for mostly with borrowed money.

IRR

Internal rate of return: the yearly rate that makes all cash flows add up to zero once converted to today’s value.

Standards and rules were last checked on November 9, 2026. ILPA templates and GIPS are industry standards without the force of law. The SEC Marketing Rule applies to US investment advisers. All worked examples are illustrative and contain no market data.