TVPI (Total Value to Paid-In)
Computes the TVPI of a private equity or venture capital fund: the total value created, adding what has already been distributed to investors to the residual value still in the portfolio (NAV), divided by the paid-in capital. It's a fund's most complete multiple, summing realized and unrealized — a TVPI of 1.5x means each dollar invested became one and a half in total value. It decomposes into DPI plus RVPI. Enter the distributions, the NAV and the paid-in capital.
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TVPI (Total Value to Paid-In)
Computes the TVPI of a private equity or venture capital fund: the total value created, adding what has already been distributed to investors to the residual value still in the portfolio (NAV), divided by the paid-in capital. It's a fund's most complete multiple, summing realized and unrealized — a TVPI of 1.5x means each dollar invested became one and a half in total value. It decomposes into DPI plus RVPI. Enter the distributions, the NAV and the paid-in capital.
The complete picture of a PE fund
Evaluating a private equity fund is tricky because part of the money has already returned to the investor and part is still locked in unsold companies. TVPI solves this by adding both ends: what has already been distributed plus the value still in the portfolio, all divided by the capital the investor put in. It's the total multiple created.
A TVPI of 1.5x means each dollar contributed turned into one and a half in value, summing realized and unrealized. It decomposes elegantly into two parts: DPI, the money actually returned, and RVPI, the value still on paper. Looking at TVPI alone can mislead, because portfolio value isn't cash in hand until the sale happens.
Enter the cumulative distributions, the residual portfolio value (NAV) and the paid-in capital. The tool returns the TVPI as a multiple. For an honest read, compare it with DPI: a high TVPI propped up by a low DPI means the return still depends on future sales that may or may not materialize.
Related Tools
RVPI (Residual Value to Paid-In)
Computes the RVPI of a private equity fund: the residual value in the portfolio (NAV) divided by the paid-in capital. It's the unrealized multiple, how much is still alive in the holdings the fund hasn't sold, waiting to turn into cash. In a fund's early years, RVPI dominates; as it divests, RVPI falls and DPI rises. The sum of the two is the TVPI. Enter the NAV and the paid-in capital.
DPI (Distributed to Paid-In)
Computes the DPI of a private equity fund: the cumulative distributions to investors divided by the paid-in capital. It's the realized multiple, the money that has actually returned to the investor's pocket, not counting what's still locked in unsold holdings. A DPI of 1.0x marks the point where the fund has returned all contributed capital; above that, it's realized profit. It complements RVPI, which measures the unrealized part. Enter the distributions and the paid-in capital.
Portfolio Turnover Ratio
Computes the turnover ratio of a portfolio or fund: the lesser of total purchases and total sales over the period, divided by average net assets, as a percentage. It's the standard measure of how much a portfolio is traded — a turnover of 100% means that, on average, the whole portfolio was swapped once in the year. High turnover usually signals more transaction costs and taxes. Enter total purchases, total sales and average net assets.
Cost of Equity (Bond Yield Plus Premium)
Estimates the cost of equity using the bond yield plus risk premium method: it adds to the company's own long-term debt yield a risk premium for the gap between stocks and bonds. It's a quick alternative to the CAPM, useful when you lack a reliable beta: if the company pays 8% on its debt and the typical equity-over-debt premium is 4%, the cost of equity comes to around 12%. Enter the debt yield and the risk premium.
Equity Risk Premium (ERP)
Computes the equity risk premium: the extra return expected from investing in stocks rather than the risk-free rate. It's simply the expected market return minus the risk-free rate, and it serves as the central building block of the CAPM, multiplied by beta to estimate an asset's required return. The larger the premium, the more the market charges to take on equity risk. Enter the expected market return and the risk-free rate.
Margin of Safety (Investing)
Computes the margin of safety of an investment: how far the market price sits below the estimated intrinsic value, as a percentage. It's the core concept of Benjamin Graham's value investing — buying an asset for well less than it's worth to build in protection against estimation errors and surprises. The larger the margin, the more comfortable the purchase. A negative margin means the price already exceeds the estimated value. Enter the intrinsic value and the market price.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.