IRR to MOIC converter
Turn a multiple into an annual return, or the other way round, for any holding period.
I know the
IRR
20,1 %
Annual return
MOIC
2,50x
Multiple of money
Exit proceeds
€25,0m
On €10,0m invested
Years to double
3,8
At this IRR
How €1 grows
IRR by MOIC and holding period
| Years | 1,5x | 2x | 2,5x | 3x | 4x | 5x |
|---|---|---|---|---|---|---|
| 2 | 22,5 % | 41,4 % | 58,1 % | 73,2 % | 100,0 % | 123,6 % |
| 3 | 14,5 % | 26,0 % | 35,7 % | 44,2 % | 58,7 % | 71,0 % |
| 4 | 10,7 % | 18,9 % | 25,7 % | 31,6 % | 41,4 % | 49,5 % |
| 5 | 8,4 % | 14,9 % | 20,1 % | 24,6 % | 32,0 % | 38,0 % |
| 6 | 7,0 % | 12,2 % | 16,5 % | 20,1 % | 26,0 % | 30,8 % |
| 7 | 6,0 % | 10,4 % | 14,0 % | 17,0 % | 21,9 % | 25,8 % |
| 8 | 5,2 % | 9,1 % | 12,1 % | 14,7 % | 18,9 % | 22,3 % |
| 10 | 4,1 % | 7,2 % | 9,6 % | 11,6 % | 14,9 % | 17,5 % |
Assumes a single investment and a single exit, with no interim cash flows. With dividends or staged investments, the real IRR will differ.
What are MOIC and IRR?
MOIC, the multiple on invested capital, says how many times you get your money back. IRR, the internal rate of return, says what annual return that means. MOIC ignores time and IRR does not, so investors read the two together.
MOIC to IRR formula
IRR = MOIC^(1 / years) − 1
MOIC = (1 + IRR)^years
Both are exact for one investment and one exit.
How to convert MOIC to IRR: an example
You invest €10m and sell for €25m five years later. The MOIC is 2,50x, and the IRR is 2,5^(1 / 5) − 1 = 20,1 %. It also works the other way round: 20 % a year for five years gives a MOIC of 2,49x.
How to calculate it in Excel
With the MOIC in B1, the years in B2 and the IRR in B3:
=B1^(1/B2)-1
=(1+B3)^B2
How time changes the IRR
The same 2,50x is worth an IRR of 35,7 % over three years, 20,1 % over five and 14,0 % over seven. Two common references over five years: 2,0x is about 14,9 % and 3,0x about 24,6 %. The grid on this page shows more combinations.
When this conversion does not apply
With dividends, staged investments or partial exits, the real IRR will differ, because money that comes back early lifts it. In those cases enter the cash flows year by year in the IRR and NPV calculator.