Navigation
by Undo Capital
December 15, 2025
Text Link

What Is MOIC (Multiple on Invested Capital)?

MOIC (Multiple on Invested Capital) measures how many times an investor has multiplied their original investment, based on total return rather than time.

MOIC (Multiple on Invested Capital) Meaning

The MOIC meaning centres on absolute return. To define MOIC in practice, it is calculated by dividing the total value returned from an investment by the original amount invested. For example, a 3x MOIC means the investor has tripled their money. A clear MOIC definition is especially useful in venture capital and private equity, where it shows headline performance without considering how long the investment took. While MOIC captures the scale of return, it does not reflect time efficiency; that’s where IRR is used. MOIC stands for simple, easy-to-read return performance.

‍

Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
‍
Participation in startups and early-stage enterprises involves significant risk. Such investments may be illiquid, may not generate dividends, may be subject to dilution, and may result in the total loss of invested capital. Any decisions or actions that may affect your business or personal interests should be taken only after seeking advice from suitably qualified professional advisors, and should form part of a balanced and diversified portfolio. This communication may contain links to third-party websites. The inclusion of such links does not imply endorsement, approval, investigation, or verification by Undo Capital. We accept no responsibility or liability for the content, accuracy, or use of information contained on any third-party websites. © 2025 Undo Capital Limited. All rights reserved. Reproduction is strictly prohibited.

Undo Capital handles everything — SEIS/EIS, investor agreements, share issue, and filings — in one simple, automated platform.

Product
About us
Resources
Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.