Free net return calculator
Alternative Investment Returns After Fees and Carried Interest
Enter the terms of your deal to see your net return.
Enter Deal Terms
The result
Gross IRR
—
Net IRR
—
Total to you
—
Total to sponsor
—
AltTrack tracks your actual net returns automatically once you're invested — free to start.
Understanding fees and carried interest
A projected gross return is not the return an investor ultimately keeps. Management fees reduce the proceeds available for distribution, while carried interest gives the sponsor a share of profits according to the deal's waterfall.
What is carried interest?
Carried interest, often called carry, is the sponsor's share of investment profits. A 20% carry generally means the sponsor receives 20% of the profit that is subject to the deal's waterfall after the applicable investor protections.
What is a hurdle rate or preferred return?
A preferred return sets the return threshold that applies before the sponsor participates in profits. Catch-up provisions and hard versus soft hurdle terms determine what happens after that threshold is reached. Read what a preferred return actually means.
Gross IRR vs. net IRR — what's the difference?
Gross IRR describes performance before investor-level fees and carry. Net IRR is the annualized return left for the investor after those costs. Fee terms are one part of a broader sponsor review; see how to evaluate a private equity sponsor.