Private Equity & VCIntermediate

MOIC

Multiple on Invested Capital

How many times the original investment was returned.

Detailed explanation

MOIC ignores time, so 2× in 3 years and 2× in 10 years look the same. That is why it is paired with IRR.

Formula

MOIC = Total value returned ÷ Total invested

Example

Invest ₹100 cr, receive ₹250 cr → 2.5×.

Why it matters

A simple measure of how much money a deal made.

Key points

  • Ignores time.
  • Pair with IRR.
  • Also called MoM (money-on-money).

Related terms

IRRLeveraged Buyout

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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.