LP Toolkit/Private Equity MOIC & Annualized Return Calculator for LPs

Private Equity MOIC & Annualized Return Calculator for LPs

Turn a private equity or VC investment multiple into a compound yearly return for the time held.

Questions this calculator answers
  1. If a private investment grows from $100 million to $200 million in seven years, what is its yearly return?
  2. If we earn 15% a year for seven years, how much could our $100 million become?
  3. What yearly return would turn $100 million into $250 million in seven years?

Return and value at a glance

Estimate based on the inputs shown.

Annualized return
+10.4%

$100m becomes $200m over 7 years.

MOIC2.00xEnding value divided by initial value.
Total return+100.0%Full-period gain or loss relative to initial value.
Investment gain$100mAbsolute change between ending and initial value.

How it is calculated

MOIC = ending value ÷ starting value; annualized return = MOIC^(1 ÷ years) − 1

Projection mode works the same formula backward. Each mode uses one starting value and one ending value, with no cash flows between them.

Read the result in context

This private equity MOIC tool uses the same compound-return formula in all three modes. It fits one entry and one exit. For fund calls and cash returned over time, use actual cash-flow dates and XIRR.

Does this replace IRR or XIRR?

Only for one starting value and one ending value. Multiple dated cash flows require their actual dates.

How is annualized return calculated?

Divide one by the number of years held. Raise MOIC to that power, then subtract one.

Why are there three modes?

They use the same formula to find a past return, a future value or the return needed for a target.