Carried Interest Calculator
Calculate the carry distribution and carried interest of an investment fund.
Your calculation result will show up here.
The fund return is:
Total GP carry distribution is:
How is carried interest estimated?
Carried interest is a manager’s share of investment profits under a fund’s distribution agreement. This tool models a simplified share of gains above a compounded hurdle.
How to use this tool
Hurdle value = initial fund value × (1 + annual hurdle rate ÷ 100)^years. Estimated carry = the positive excess of final value over hurdle value × carry percentage ÷ 100. The separate fund-return figure is total holding-period return, not annualized return.
Example
A $1,000,000 fund ending at $1,200,000 after one year, with an 8% hurdle and 20% carry, has $120,000 above its hurdle and $24,000 estimated carry.
Understanding your result
No carry is due under this simplified model if the hurdle is not met. Real waterfalls may include catch-up provisions, fees, interim distributions, clawbacks, and different timing rules; the governing agreement determines actual distributions.
Related tools: Payback Period Calculator · CMGR Calculator.
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