Private Equity / VC Distribution Waterfall (8% Hurdle, GP Catch-Up & 20% Carry) Calculator

Calculate LP preferred return, GP catch-up, 20% carried interest, and Net LP TVPI.

Total GP Carried Interest Earned
13,000,000 USD
Total Net LP Distribution 102,000,000 USD
LP Preferred Return Hurdle Paid 23,466,403.84 USD
Net LP Multiple (Net TVPI / DPI) 2.04 ×
Inputs
⚡ Scenarios:
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
currency
Total paid-in capital called from Limited Partners (LPs).
currency
Total gross exit proceeds available for distribution.
%/yr
Annual compounded LP preferred return hurdle rate (typically 8%).
%
General Partner (GP) carried interest percentage (typically 20%).
years
Average capital holding period in years.
Results & Graph
Total GP Carried Interest Earned
13,000,000 USD
Total Net LP Distribution
102,000,000 USD
LP Preferred Return Hurdle Paid
23,466,403.84 USD
Net LP Multiple (Net TVPI / DPI)
2.04 ×

Total GP Carried Interest Earned

Graph 1 • PE / VC Waterfall & Carry • Domain Architecture & Live Telemetry Maps Called Fund Capital, Gross Exit Distributions, Preferred Return Hurdle Pct through PE / VC Waterfall & Carry Formula.
PORTFOLIO & WEALTH MANAGEM Total GP Carried Interest 13,000,000 USD Total Net LP Distribution 102,000,000 USD PE / VC Waterfall & Carry • Component Waterfall Total GP Carried Interest Earn 13,000,000 USD Total Net LP Distribution 102,000,000 USD LP Preferred Return Hurdle Pai 23,466,403.84 USD Net LP Multiple (Net TVPI / DP 2.04 ×
Graph 2 • Total GP Carried Interest Earned Across Called Fund Capital Sweep (40% → 160%) Evaluates PrefHurdle = CommittedCapital × [(1 + Hurdle%)^Years − 1]; CarriedInte across 7 operating points (current input highlighted).
0 USD 10.45M USD 20.90M USD 19.00M 20.00M 17.00M 30.00M 15.00M 40.00M 13.00M 50.00M 11.00M 60.00M 9.00M 70.00M 0 80.00M
Graph 3 • Joint Sensitivity: Called Fund Capital × Gross Exit Distributions Compares Total GP Carried Interest Earned when Gross Exit Distributions is shifted +25% (solid) vs. −25% (dashed).
0 USD 11.97M USD 23.94M USD --- Gross Exit Distributions @ 75% 21.76M -30% 20.26M -15% 18.76M +0% 17.26M +15% 15.76M +30%
Summary: From USD 115,000,000.00 gross proceeds on USD 50,000,000.00 capital, LPs receive USD 102,000,000.00 (2.04× Net TVPI including USD 23,466,404.00 preferred hurdle) and the GP earns USD 13,000,000.00 in carried interest.
Summary: From USD 115,000,000.00 gross proceeds on USD 50,000,000.00 capital, LPs receive USD 102,000,000.00 (2.04× Net TVPI including USD 23,466,404.00 preferred hurdle) and the GP earns USD 13,000,000.00 in carried interest.
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Interactive chart & math engine powered by CalculatorGraph

Formula & Mathematical Methodology: PE / VC Waterfall & Carry Formula

PrefHurdle = CommittedCapital × [(1 + Hurdle%)Years − 1]
CarriedInterest = 20% of profits above hurdle after catch-up
PrefHurdle = CommittedCapital × [(1 + Hurdle%)^Years − 1]; CarriedInterest = 20% of profits above hurdle after catch-up
  • calledFundCapital: Called Fund Capital (currency)
  • grossExitDistributions: Gross Exit Distributions (currency)
  • preferredReturnHurdlePct: Preferred Return Hurdle Pct (%/yr)
  • carriedInterestPct: Carried Interest Pct (%)
  • holdingPeriodYears: Holding Period Years (years)

Rounding: Currency outputs round to 2 decimal places; effective rates and multiples display to 2 decimal places.

Worked Example: Benchmark Scenario: PE / VC Waterfall & Carry

Calculate LP preferred return, GP catch-up, 20% carried interest, and Net LP TVPI.

  1. Enter your financial, equity compensation, or tax parameters.
  2. Evaluate the governing equation: PrefHurdle = CommittedCapital × [(1 + Hurdle%)^Years − 1]; CarriedInterest = 20% of profits above hurdle after catch-up.
  3. Review the primary result, supporting metrics, and 3 interactive SVG charts.
Result: Computes PE / VC Waterfall & Carry via PrefHurdle = CommittedCapital × [(1 + Hurdle%)^Years − 1]; CarriedInterest = 20% of profits above hurdle after catch-up.

Frequently Asked Questions

How does the Private Equity / VC Distribution Waterfall (8% Hurdle, GP Catch-Up & 20% Carry) Calculator calculate results?

It evaluates PrefHurdle = CommittedCapital × [(1 + Hurdle%)^Years − 1]; CarriedInterest = 20% of profits above hurdle after catch-up directly in your browser and updates three custom SVG visualizations in real time.

Can I use Goal Seek to solve backwards for a target amount?

Yes. Click "🎯 Goal Seek" in the results toolbar to solve backwards for any numeric input parameter.

Are my financial and compensation numbers kept private?

Yes. All calculations execute 100% locally in your browser with zero server transmission.

Finance & Investing · Portfolio & Wealth Management

Private Equity / VC Distribution Waterfall (8% Hurdle, GP Catch-Up & 20% Carry) Calculator: inputs, method, and how to read the result

Calculate LP preferred return, GP catch-up, 20% carried interest, and Net LP TVPI.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Called Fund Capital: Total paid-in capital called from Limited Partners (LPs).
  • Gross Exit Distributions: Total gross exit proceeds available for distribution.
  • Preferred Return Hurdle Pct: Annual compounded LP preferred return hurdle rate (typically 8%).

What the calculation includes

With the default values shown, Total GP Carried Interest Earned is 13,000,000 USD. The calculation follows PE / VC Waterfall & Carry Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Called Fund Capital from 50,000,000 currency to 55,000,000 currency changes Total GP Carried Interest Earned from 13,000,000 USD to 12,000,000 USD. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses published statutory rules, standard compounding conventions, and marginal tax rates entered by the user.
  • For educational and financial planning analysis; consult a CPA or qualified advisor for personalized tax filings.

Scope: Global / US / India / UK / Canada / Australia Statutory Standards Check the assumptions and limitations against your situation before relying on the estimate.

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