Carried Interest Calculator

Your details

Total capital committed by all limited partners and the general partner combined.
Percentage of total fund size contributed by the general partner. Typically 1-2% in PE.
%
Total distributions from all fund investments, before any waterfall splits.
Annual minimum return LPs must receive before carry accrues. Typically 8% in private equity.
%
Investment period over which the preferred return compounds.
years
GP share of profits above the hurdle. Industry standard is 20%.
%
100% means all profit above the hurdle goes to the GP until they reach their target carry split. 0% means no catch-up provision.
%
European: carry only after the entire fund returns capital and hurdle to all LPs. American: carry can be taken on each winning deal as proceeds are returned.
Currency
GP carried interest
$20,000,000

Total profit distributed to the general partner as performance fee

LP total distribution$178,000,000
LP capital returned$98,000,000
LP preferred return$45,994,152
GP catch-up payment$11,498,538
Total fund profit$100,000,000
Fund MOIC2x
Approximate IRR0.1%
GP effective profit share0.2%
LP net MOIC1.82x
LP total$178,000,000
GP carry$20,000,000

GP carry is $20,000,000 on a 2.00x fund.

  • The fund returned 2.00x on invested capital, equivalent to an approximate 14.9% annualized IRR.
  • The GP earns 20.0% of total fund profit as carried interest, worth $20,000,000.
  • LPs receive a net 1.82x multiple on their invested capital after preferred return and profit split.
  • With a 100% catch-up provision, all profits above the 8% hurdle flow to the GP until they reach their 20% target share.

Next stepThis uses the European (whole-fund) waterfall. GPs cannot receive carry until ALL LP capital and preferred return has been distributed across the entire fund.

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