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Leni

CEO at Leni

Calculating MOIC (Multiple on Invested Capital) in real estate is a straightforward method for evaluating the profitability of an investment. MOIC shows how much an investment has grown relative to the initial capital invested, making it an essential metric in venture capital and private equity. Unlike IRR, which accounts for the time value of money, MOIC simply measures the investment's gross multiple, providing clear insights into total returns. This guide walks through the process of calculating MOIC, explaining key concepts such as cash flow, equity investment, and paid-in capital. We’ll also compare MOIC to IRR, helping you understand when to use each metric in real estate investment...