Carried Interest Calculator

Estimate GP carry after preferred return hurdle — simplified European whole-fund waterfall.

GP carried interest

$14,400,000 (20% of profit above hurdle)

LP total (after carry): $165,600,000 · MOIC 1.8×

Simplified European waterfall: carry applies only to profits above the hurdle (no catch-up modeled).

Waterfall breakdown

Total profit (distributions − capital)
$80,000,000
Preferred return hurdle
$8,000,000
Profit above hurdle
$72,000,000
LP share of excess (after carry)
$57,600,000
GP carry as % of total profit
18%

Models a simplified European whole-fund waterfall: return capital, pay the preferred return hurdle, then apply GP carry to remaining profits. Real fund LPA terms may include catch-up, clawback, deal-by-deal waterfalls, and tiered carry — confirm with your legal/finance team.

Carried Interest Calculator helps you estimate gp carry after preferred return hurdle — simplified european whole-fund waterfall. It is commonly used by finance teams, founders, individual planners for carried interest calculator, private equity carry calculator, gp carry calculation.

What it calculates

Carried interest is the GP’s share of fund profits above a preferred return (hurdle) — commonly 20% in the “2 and 20” model.

This tool uses:

Carry = (Total profit − Hurdle) × Carry %

where Total profit = Total distributions − Committed capital.

Example (pre-filled)

$100M committed · $180M distributions · 8% hurdle (simple) · 20% carry → $14.4M GP carry.

Hurdle methods

  • **Simple** — % of committed capital (one-shot preferred return)
  • **Cumulative** — annual % × fund life years
  • **Compounded** — `(1 + r)^years − 1` on committed capital

Limits

Real LPAs may include catch-up, clawback, American vs European waterfalls, and deal-level tiers. This is an illustrative model only.

Disclaimer: This calculator provides information only and is not financial, tax, or legal advice.

Frequently Asked Questions