---
title: "What Is MOIC?"
term: "MOIC"
description: "MOIC (multiple on invested capital) measures how many times an investment's current or realized value exceeds the original amount invested—expressed as a ratio such as 3.0x on $1M invested."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["fund-economics", "metrics"]
source: https://venturecapitaltracker.com/glossary/moic
---

# What Is MOIC?

> MOIC (multiple on invested capital) measures how many times an investment's current or realized value exceeds the original amount invested—expressed as a ratio such as 3.0x on $1M invested.

Also called: multiple on invested capital

**MOIC** (multiple on invested capital) is the ratio of value received—or marked—to capital deployed on an investment. It answers a simple question: how many dollars back per dollar in?

### How it works

At the deal level:

MOIC = (Proceeds + remaining fair value) / Total invested capital

Example: a fund invests $5M across a Series A and two follow-ons ($8M total). The company exits for $40M and the fund owns 20% → $8M proceeds. MOIC = $40M / $8M = 5.0x on that holding (simplified; actual waterfall and fees adjust net to LPs).

At the fund level, gross MOIC resembles [TVPI](/glossary/tvpi): total fund value divided by paid-in capital. [DPI](/glossary/dpi) is the realized slice (distributions only). [IRR](/glossary/irr) adds the time dimension—a 3.0x MOIC in four years beats 3.0x in twelve years.

MOIC ignores fees and carry unless specified as *net* MOIC. LP reports often show both gross deal MOIC (GP marketing) and net fund metrics after economics.

### Why it matters

- **LPs:** MOIC benchmarks fund selection and re-up decisions, especially alongside DPI to see how much is cash versus paper.
- **GPs:** Portfolio reviews rank winners and losers by MOIC; reserve allocation chases deals that can return the fund.
- **Founders:** Exit modeling with lead investors often uses MOIC thresholds ("need 5x+ on this fund's entry to move the needle").

### Common mistake

Quoting headline MOIC on unrealized marks at peak valuation, then treating it like realized DPI when the company later raises down or sells flat.

### Related ideas

See also [TVPI](/glossary/tvpi), [DPI](/glossary/dpi), [IRR](/glossary/irr), and [mark-to-market](/glossary/mark-to-market).

## FAQ

### What is MOIC in simple terms?

MOIC tells you the multiple you got back—or could get back—on money you put in. Invest $2M, receive $6M at exit, MOIC is 3.0x. It ignores how long the money was tied up.

### Why does MOIC matter?

Venture funds are judged on multiples and speed. MOIC is the clean headline for a single deal or fund gross return before layering in IRR, fees, and carry.


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Source: https://venturecapitaltracker.com/glossary/moic