VC Salary Calculator

VCs have three income streams: base salary, annual bonus, and carried interest (carry). Base salary and bonus come from the fund's management fees (typically 2% of committed capital annually). Carry is the GP's share of investment profits (typically 20%) and only pays out when portfolio companies exit — usually 7-10 years after investment. For senior partners, carry can be worth millions, dwarfing cash compensation.

GP salaries vary enormously by fund size. At a $10M micro-fund, the solo GP might pay themselves $100K-$150K (management fees barely cover overhead). At a $100M fund, GPs typically earn $250K-$500K in base salary plus bonus. At mega-funds ($1B+), managing partners can earn $1M+ in cash compensation. The real wealth comes from carry, not salary — a 20% carry on a 3x $100M fund is worth $40M to the GP team.

Carry allocation typically begins at the senior associate or VP level, though meaningful carry usually starts at the principal or partner level. Junior team members might receive 1-5% of the GP's total carry pool, while partners split the majority. Carry only converts to actual cash when portfolio companies exit and the fund has returned capital plus the preferred return to LPs — meaning you might wait 5-10 years to see your first carry distribution.

VC cash compensation is generally lower than investment banking at equivalent levels. A first-year banking analyst earns $150K-$200K total, while a first-year VC analyst earns $90K-$140K. However, the gap narrows at senior levels, and carry creates uncapped upside that banking bonuses can't match. The tradeoff is liquidity and certainty — banking pays guaranteed cash annually, while VC carry is illiquid, uncertain, and pays out over a decade.