# What is Multiple on Invested Capital? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Metrics  
> **Canonical Citation:** [https://spidits.com/startup-glossary/moic](https://spidits.com/startup-glossary/moic)

## Definition
Multiple on Invested Capital (MOIC) is a performance metric that compares the total value of an investment (realized returns + current value) to the initial cost of the investment.

## Architectural Mechanics & Deep Dive
Multiple on Invested Capital (MOIC) is a performance metric that compares the total value of an investment (realized returns + current value) to the initial cost of the investment.

## Industry Applications & Real-World Use Cases
Individual startup investment performance tracking

## Frequently Asked Questions

### How is MOIC calculated?
MOIC = (Realized Value + Unrealized Value) / Capital Invested.

### How does MOIC differ from IRR?
MOIC measures total return multiple without factoring in time, while IRR calculates the annualized rate of return over time.

## Related Terminology
- [tvpi](https://spidits.com/startup-glossary/tvpi)
- [dpi](https://spidits.com/startup-glossary/dpi)
- [irr](https://spidits.com/startup-glossary/irr)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*