VC Fund Economics
Carry Calculator
Calculate GP carry after hurdle rate, preferred return, and LP capital return.
Fund Terms
GP Split
Carry Distribution
Total GP carry
$8.41M
3.00× fund MOIC · hurdle ✓ met
8% preferred return over 10 years
2.86× LP MOIC
60% split
40% split
Get this as a report
We'll email you these results with benchmark comparisons and a plain-English interpretation. Free.
How to Use This Tool
Enter your fund size, total distributions, hurdle rate, and carry percentage. The calculator shows how profits split between the GP (you) and LPs after the preferred return is met.
Carry Calculation
Carry = (Total Profits - Hurdle Return) × Carry %
If your $50,000,000 fund returns $150,000,000, the profit is $100,000,000. After the 8% hurdle (about $40,000,000 over the fund life), carry is 20% of the remaining $60,000,000 = $12,000,000 to the GP.
Why This Matters
Carried interest is how VCs build real wealth. Management fees cover operating costs, but carry is the upside. For a $50,000,000 fund that returns 3x, the GP's 20% carry can be worth $20,000,000+. Understanding carry mechanics is essential for structuring your fund and communicating economics to LPs.
Industry Benchmarks
Standard Carry
20%
Industry standard for most funds
Emerging Manager Carry
15–20%
First-time funds sometimes offer reduced carry
Common Hurdle Rate
8%
Annual preferred return to LPs before carry kicks in
VentureKit
Ready to launch your fund?
Turn your thesis into a complete fund launch package — strategy memo, LP pitch deck, financial models, and 11 more custom documents. Generated in 24 hours.
Build Your Fund Package