Exit Rate Calculator — Investment Exit Return & IRR
Measure the return on an investment at exit: enter the entry cost, exit proceeds, holding period and any carried interest to instantly see the exit multiple (MOIC), annualised gross and net IRR, and the net proceeds after the fund manager's profit share.
years
%
Multiple on invested capital: exit value ÷ entry investment
- 1
Absolute gain
3,500,000 − 1,000,000 = 2,500,000 - 2
Exit multiple (MOIC)
3,500,000 ÷ 1,000,000 = 3.50How many times the invested capital was returned at exit. - 3
Annualisation exponent
1 ÷ 5 = 0.2 - 4
Gross IRR
3.5^(1 ÷ 5) − 1 = 28.47 %
How does this calculator work?
For a single-entry, single-exit investment: MOIC = Exit ÷ Entry; gross IRR = (Exit/Entry)^(1/years) − 1; net proceeds = Exit − 20% × gain (for standard carry). A 3.5× exit over 5 years yields roughly 28.5% gross IRR and 24.7% net IRR after 20% carry.
Formula
How this is calculated
An exit return analysis starts with two key figures: the entry investment (how much was deployed) and the exit value (gross proceeds). From these the calculator derives three standard private-equity performance metrics. The exit multiple — also called MOIC, or Multiple on Invested Capital — is the simplest ratio: exit divided by entry, showing how many times the original money was returned. A 3× MOIC means the investor received three dollars for every one invested.
The internal rate of return (IRR) converts that same total gain into an annualised growth rate so that deals of different lengths can be compared on equal footing. The formula used here is the closed-form IRR for a single cash-in at entry and a single cash-out at exit: IRR = (Exit / Entry)^(1 / years) − 1. For example, a 3× MOIC over 5 years corresponds to a gross IRR of about 24.6%.
The net IRR adjusts for carried interest — the portion of profits paid to the fund manager. In private equity the standard carry is 20% of gains above the invested amount. The calculator subtracts carried interest from the gain before recomputing the IRR, giving investors the return they actually pocket. Leave carried interest at 0 for direct investments or public market transactions where no profit share applies.
Frequently asked questions
MOIC (Multiple on Invested Capital) measures total magnitude of return — a 3× MOIC means the investment tripled — without regard to time. IRR converts the same gain into an annualised percentage rate so you can compare a 3× in 3 years (44% IRR) against a 3× in 7 years (17% IRR). Both metrics are needed together; a high MOIC is much more impressive if the holding period is short.
Carried interest (or "carry") is the performance fee paid to the fund manager — typically 20% of investment gains in private equity and venture capital. It reduces the proceeds available to limited partners (investors), which lowers their net IRR. The calculator computes both gross IRR (before carry) and net IRR (after carry) so you can see the impact clearly.
Yes. Set carried interest to 0 (no profit share) and enter the purchase price as entry and the current market value or sale price as exit. The MOIC and IRR figures are identical to a time-weighted total return calculation for a single lump-sum investment with no interim cash flows.
Also known as
TG we-Calculate Editorial Team. (2026). Exit Rate Calculator — Investment Exit Return & IRR [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/exit-rate-calculator
TG we-Calculate Editorial Team. "Exit Rate Calculator — Investment Exit Return & IRR." TG we-Calculate. 2026. https://we-calculate.com/calculator/exit-rate-calculator.
TG we-Calculate Editorial Team, "Exit Rate Calculator — Investment Exit Return & IRR," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/exit-rate-calculator
@misc{wecalculate_exit_rate_calculator, title = {Exit Rate Calculator — Investment Exit Return & IRR}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/exit-rate-calculator}}, year = {2026}, note = {TG we-Calculate} }
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