Calculate Carried Interest in Seconds
Our carried interest calculator shows exactly how fund size, MOIC, and carry % affect your take-home. Build your FIRE number with confidence.
Frequently Asked Questions
Model gross carry, management fees, and LP net returns in one click. The fastest carried interest calculator built for serious fund managers.
A: Carried interest is the share of a fund's profits paid to the General Partner (GP). The standard formula: subtract the preferred return (hurdle) from gross profit, then apply the carry percentage (typically 20%) to that remaining amount. Example: a $100M fund returning 1.8x generates $80M gross profit. After an 8% hurdle, the GP receives 20% of $72M = $14.4M gross carry.
A: The hurdle rate (preferred return) sets the minimum return LPs must receive before GPs earn any carry. A higher hurdle directly reduces — or eliminates — GP carry. At an 8% hurdle on a $100M fund over 10 years, approximately $8M is reserved for LPs before carry calculations begin. Use our carried interest calculator to model exactly how hurdle rate shifts your payout.
A: MOIC (Multiple on Invested Capital) is the single biggest lever in carry calculations. At 1.5x MOIC, carry may be modest. Push to 2.5x and the same 20% carry structure can generate 3–4x more GP income. Our calculator lets you drag MOIC in real time and watch the carry number respond — critical for scenario planning before a fund close.
A: Divide gross carry by the number of GP partners. If total gross carry is $14.4M across 3 partners, each receives $4.8M. Our carried interest calculator handles this split automatically. Add GP commitment capital returns on top for a complete picture of total partner economics.
A: The market standard is 20% carried interest, sometimes called "two and twenty" alongside a 2% management fee. Top-tier or specialized funds occasionally negotiate 25–30% carry with lower management fees. Emerging managers may accept 15% to attract LP capital. The "right" number depends on your fund's track record, strategy, and LP relationships.
A: Gross carry is calculated on total fund profits before expenses. Net carry accounts for GP clawback provisions, legal costs, and tax obligations. Most LP agreements specify net carry terms. Always model both — our calculator shows gross carry by default, giving you a ceiling figure to negotiate from.
A: Management fees are paid regardless of fund performance and directly reduce LP net return. A 2% annual fee on a $100M fund over 10 years equals $20M in total fees — money that never gets invested. This is why LPs closely scrutinize the LP Net Return Multiple when evaluating fund terms. Lower fees with strong carry alignment often signals GP confidence.
A: Yes. If you're a fund manager on a FIRE (Financial Independence, Retire Early) path, carry is likely your largest wealth-creation event. Model different fund sizes, return multiples, and carry splits to pinpoint the single fund outcome that funds your number. Pair it with your management fee income projections for a complete GP compensation picture.