Formula
How to Calculate TVPI
Total Value to Paid-In — the sum of distributions plus remaining portfolio value, divided by capital contributed. Includes both realized and unrealized returns.
Total Value to Paid-In Capital
TVPI = (Distributions + Residual Value) / Paid-In Capital
Where
- Distributions
- = Cumulative cash returned to LPs
- Residual Value
- = Estimated fair value of remaining portfolio companies (NAV)
- Paid-In Capital
- = Total capital contributed by LPs to date
What Is TVPI?
TVPI (Total Value to Paid-In) is a comprehensive fund performance metric that captures both realized returns (cash distributed to LPs) and unrealized value (estimated value of remaining portfolio). Formula: TVPI = (Cumulative Distributions + Residual Value) / Paid-In Capital. TVPI = DPI + RVPI. A fund with TVPI of 2.5x has generated $2.50 of total value for every $1 invested, though some of that value may still be on paper. TVPI is the most commonly cited headline metric during a fund's active life, but savvy LPs always look at the DPI/RVPI breakdown to understand how much is realized vs. unrealized.
Why TVPI Matters
TVPI gives the most complete picture of fund performance at any point in time. For young funds (years 1-5), it's the primary performance indicator since few exits have occurred. For mature funds, the gap between TVPI and DPI reveals how much value is still locked up in unrealized holdings. A narrowing TVPI-DPI gap over time is a positive signal — it means the GP is converting paper gains into real exits.
Frequently Asked Questions
How do you calculate TVPI?
TVPI is calculated using the formula: TVPI = (Distributions + Residual Value) / Paid-In Capital. Total Value to Paid-In — the sum of distributions plus remaining portfolio value, divided by capital contributed. Includes both realized and unrealized returns.
What is a good TVPI?
What constitutes a "good" TVPI depends on context — the fund's stage, vintage year, and strategy. Check our benchmarks and calculators for specific ranges.