scale-dux Account
Calculators/Investor ROI
Takes about 2 minutesFree, no sign-upMOIC and IRR

Investor ROI Calculator

Whether you are the investor or pitching one, this is the maths behind the cheque. Enter the investment, the stake and the exit you expect, and see the ROI, the multiple on invested capital, and the annualised return that investors really care about.

View
Your inputs
Everything updates the moment you type
₹
%
%
The exit
₹
Return multiple (MOIC)
Home run
19.5×
Turns ₹50 L into ₹9.75 Cr over 6 years
Exit proceeds
₹9.75 Cr
Total ROI
+1850%
Annualised IRR
64%
Stake at exit
6.5%
From cheque to proceeds
Your money and the gain on top
₹50 L
+₹9.25 Cr
₹9.75 Cr
Invested
Gain
Proceeds
Proceeds at different exits
How the return scales with the exit
₹4.88 Cr
₹9.75 Cr
₹19.5 Cr
₹39 Cr
0.5×
exit
1×
exit
2×
exit
4×
exit
Investment growth
Stake value from entry to exit
Stake value
Y0Y1Y2Y3Y4Y5Y6
How this calculator works

Multiple, return and annualised rate

Proceeds are the exit value times your stake after dilution. Compare that to what you put in for the multiple and ROI, then annualise it for IRR.

The formulas
Stake at exit
Stake × (1 − Future dilution)
Proceeds
Exit valuation × Stake at exit
MOIC
Proceeds ÷ Amount invested
IRR
(MOIC ^ (1 ÷ Years)) − 1
Every field explained

What each input actually means

Amount invested
The cheque the investor writes into this round. It is the cost basis the return is measured against.
Ownership stake
The percentage of the company the investment buys today, before any future dilution.
Future dilution
The share of ownership you expect to lose to later funding rounds before the company exits.
Expected exit valuation
What you think the company will be worth when it is sold or goes public. The biggest driver of the return.
Holding period
The number of years from investment to exit. It converts the total return into an annualised IRR.
Benchmarks

What return should investors target?

Return expectations fall as risk falls, so the required multiple depends heavily on stage.

Seed: aim for 10x or more
The earliest and riskiest cheques. Investors need the winners to return ten times or more to cover the losers.
Series A: 5x to 10x
Still high risk but with more proof. Funds look for several times their money on the companies that work.
Later stage: 2x to 4x
Lower risk, lower multiple. The company is more proven, so a smaller multiple can still be an excellent return.
IRR above 25%
A common venture benchmark. Top funds target annualised returns of 25 percent or more across the portfolio.
Questions, answered

Investor ROI FAQ

Investor ROI is the return on an investment, shown as the percentage gain over the amount invested. It is the exit value minus the amount invested, divided by the amount invested.
Keep going

Your next move

See all calculators →
Powered by ScaleDux

Build your startup on numbers you trust

ScaleDux connects founders with verified experts, mentors and investors. All from one free account.