Private-market people speak in multiples, finance people speak in rates. This converts between them for a given holding period - and is honest about when the neat identity breaks.
Time from money in to money out. The conversion assumes nothing moved in between.
How do you convert IRR to MOIC?
With one investment at the start and one distribution at the end, the two metrics are the same fact in different clothes: MOIC = (1 + IRR)years. A 15% IRR held for 5 years is a 2.01x multiple; a 3x multiple over 7 years is a 17.0% IRR. That is the entire calculation - the interesting part is the caveat.
Why can the same IRR mean different multiples?
The identity assumes no cash moved in between. Real funds distribute along the way, and money returned early gets counted generously by IRR while barely moving the multiple - which is why a fund can report a 25% IRR and a 1.6x MOIC in the same letter, and why sophisticated investors always ask for both. If you have the actual dated cash flows, skip the conversion and solve the real thing in the NPV & IRR calculator.
For general information and education only. This page shows the mathematics of the numbers you enter - it does not know your circumstances, tax position, or appetite for risk, and nothing here is financial, investment, tax, or legal advice. For decisions that matter, check the figures against your own documents and talk them through with a qualified adviser.
Common questions
What is MOIC?
Multiple on invested capital: total money returned divided by total money invested. A 2.5x MOIC means every dollar in came back as two dollars fifty - with no regard for how long it took, which is exactly what IRR adds.
Can the same IRR mean different MOICs?
Yes. IRR rewards getting money back early; MOIC only counts how much. A fund that returns capital quickly can post a high IRR with a modest multiple, which is why serious investors always look at both numbers together.
Which matters more, IRR or MOIC?
Neither alone tells the full story - they answer different questions. IRR tells you how efficiently the money was used over time; MOIC tells you the actual scale of the gain. A short, fast deal can have an excellent IRR and a mediocre MOIC, while a long-held investment can have the reverse; most professional investors report both figures together rather than picking one.
What counts as a good MOIC?
It depends heavily on the asset class and holding period - private equity and venture capital funds commonly target somewhere around 2x-3x over a multi-year hold, with venture specifically accepting a wider spread of outcomes given the higher failure rate of individual investments. There is no universal target; compare against what similar-risk investments in the same category and timeframe have delivered.