MOIC ⇄ IRR converter
Private-fund return arithmetic.
Interactive: MOIC ⇄ IRR converterEasy
Turn a fund's cash-in / cash-out into its multiple and implied annual return — then compare with what public markets would have done.
- MOIC
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- Implied IRR
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- Same $ at 8% public
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Single-cash-flow approximation; real funds have staggered calls and distributions (J-curve). If the fund's outcome doesn't clearly beat the public alternative after fees, the illiquidity wasn't paid for.
The idea behind it
This calculator belongs to Alternatives & Private Markets, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.
Instruments it applies to
- Private Equity Fund — Buy whole companies with borrowed money, improve or re-lever them, sell in five years — finance's ownership business.
- Venture Capital — Portfolios of long shots: most investments die, one pays for everything — the power law as an asset class.
- Private Credit — The shadow banking success story: funds replaced banks as lenders to the buyout world, and kept growing.
- Hedge Fund — Not an asset but a licence: pooled capital free to go long, short, levered and anywhere — strategies as the product.
- Catastrophe Bond — Earn double-digit yields for insuring hurricanes — the asset class genuinely uncorrelated with markets.
- Infrastructure Funds — Owning the pipes, ports, towers and grids — cash flows measured in decades, contracts measured in inflation clauses.
- Annuity — The only product that pays until you die. You are not buying a return — you are buying insurance against outliving your money, and the price is your capital.
- Timberland & Farmland — Assets that grow while you wait. The only investment whose inventory increases in volume when you decline to sell it — and the reason institutions treat them as a category of their own.
More calculators from Alternatives & Private Markets
- Fee drag over time — what 2-and-20 compounds into.
- Sharpe & Sortino ratio — return per unit of risk taken.
- PE fund waterfall (simplified) — gross to LP-net, past fees, pref and carry.
- Discount, re-rating and total return — what closing the gap is actually worth.
- The unrecoverable cost of owning vs. renting — the unrecoverable cost of each, per year.