How to Calculate MOIC: Multiple on Invested Capital Explained
MOIC is the simplest measure of investment returns in venture capital. Learn how to calculate it, how it differs from IRR, and what benchmarks distinguish great funds from average ones.
Quick Answer
MOIC is the simplest measure of investment returns in venture capital. Learn how to calculate it, how it differs from IRR, and what benchmarks distinguish great funds from average ones.
How to Calculate MOIC: Multiple on Invested Capital Explained
MOIC — Multiple on Invested Capital — answers the most basic question in venture investing: how many times did you multiply your money? If you put in $1M and got back $5M, your MOIC is 5x.
It's the simplest return metric in VC. Unlike IRR, it doesn't account for time. Unlike NPV, it doesn't require a discount rate. It's a pure ratio: what came out divided by what went in.
What Is MOIC?
MOIC measures the total value returned (or projected to be returned) as a multiple of the capital originally invested. It's reported at both the deal level (how did this individual investment perform?) and the fund level (how did the overall fund perform?).
The VC Beast Brief
Join 5,000+ VC professionals
Weekly intelligence on fundraising, VC strategy, and the signals that matter. Every Tuesday, free.
The VC Beast Brief
Join 5,000+ VCs reading The VC Beast Brief
Weekly intelligence on fundraising, VC strategy, and the signals that matter. Every Tuesday, free.
No spam. Unsubscribe anytime.
Share your take
Add your commentary and post it on X
How to Calculate MOIC: Multiple on Invested Capital Explainedhttps://vcbeast.com/how-to-calculate-moic-formula
Your commentary will be posted to X with a link to this article.