💼 Carried Interest Calculator
Estimate GP carry over the hurdle
How to Use This Calculator
1
Enter capital and proceeds
Provide invested capital and total proceeds from exits/distributions.
2
Set hurdle and carry
Input the hurdle rate (%) and carry percentage (%).
3
View carry
Click Calculate to see GP carry, LP profit, and summary.
Formula
Carry = max(0, (Profit − Capital × Hurdle) × Carry%)
Profit = Proceeds − Capital
Hurdle Amount = Capital × Hurdle Rate
About Carried Interest Calculator
Carried interest (carry) is the GP’s share of profits above a hurdle. This tool estimates carry in a simple European waterfall without catch-up.
Notes and Tips
- This simplified model ignores preferred return compounding and catch-up mechanics
- Use annualized hurdle assumptions consistent with the distribution timing
- For complex waterfalls, consult detailed LPAs
Frequently Asked Questions
Does this handle catch-up?
No. This simplified calculator assumes no GP catch-up; it only applies carry above the hurdle.
What if proceeds are below invested capital?
Then profit is zero and no carry is paid.
What rates should I enter?
Use percentages (e.g., 8 for 8%). The output shows dollar amounts where applicable.