🤝 Carried Interest Calculator
Estimate a fund manager’s carried interest based on total profit, the preferred return (hurdle rate), and the carry percentage.
What is carried interest?
Carried interest is the share of investment profits paid to a fund’s general partner (GP), such as a private equity or venture capital manager, as performance compensation. It’s usually a percentage (commonly 20%) of profits above a minimum return owed to investors first, called the hurdle rate.
How this calculator works
We calculate the hurdle amount (committed capital × hurdle rate), then apply the carry percentage only to profit above that hurdle. This is a simplified ‘no catch-up’ model; real fund agreements can include catch-up clauses and tiered carry structures.
This calculator is for general educational purposes and simplifies real fund waterfall structures, which vary by agreement.