Estimate a fund manager’s carry above a preferred return hurdle.
Please do not make financial decisions based on these results.
What is the Carried Interest Calculator?
Estimate a fund manager’s carry above a preferred return hurdle. To use the Carried Interest Calculator, enter committed capital, exit proceeds, hurdle, years, carry; it returns carried interest, total profit, hurdle amount, investor net profit, and shows them instantly as you type.
Where the Carried Interest Calculator fits
Estimate a fund manager’s carry above a preferred return hurdle. The main figure it returns is the Carried interest, worked out from the values you enter.
It belongs with the other stocks & equity analysis tools. If you are comparing options or checking a result from another angle, try the Beta Stock Calculator, Intrinsic Value Calculator or the WACC Calculator (Weighted Average Cost of Capital).
How to use the Carried Interest Calculator
- Enter your numbers. The inputs are Committed capital ($), Exit proceeds ($), Hurdle (% per year), Years, Carry (%). Take price and share figures from the latest filing or quote. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Carried interest, and the cards below show Total profit, Hurdle amount, Investor net profit. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Carried Interest Calculator using the default values shown in the calculator above:
Inputs
| Committed capital ($) | 50,000,000 |
|---|---|
| Exit proceeds ($) | 90,000,000 |
| Hurdle (% per year) | 8 |
| Years | 5 |
| Carry (%) | 20 |
Results
| Carried interest | $8,000,000.00 |
|---|---|
| Total profit | $40,000,000.00 |
| Hurdle amount | $23,466,403.84 |
| Investor net profit | $32,000,000.00 |
With these inputs the calculator returns Carried interest: $8,000,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Committed capital ($) from 50,000,000 to 60,000,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Carried interest | $8,000,000.00 | $6,000,000.00 | -25% |
| Total profit | $40,000,000.00 | $30,000,000.00 | -25% |
| Hurdle amount | $23,466,403.84 | $28,159,684.61 | +20% |
| Investor net profit | $32,000,000.00 | $24,000,000.00 | -25% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Carried Interest Calculator reports Carried interest, total profit, hurdle amount and investor net profit. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a hurdle rate?
A minimum return investors must earn before the manager takes carry.
Where do I find the inputs?
Company filings (10-K and 10-Q), investor relations pages and your broker show earnings, equity, debt and share counts.
Which valuation ratio should I trust?
No single ratio is enough. Compare several multiples with the company’s own history and its industry peers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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