How to Calculate DPI, RVPI and TVPI: Formula, Example and Common Mistakes

DPI, RVPI and TVPI are three ratios with the same denominator, paid-in capital: DPI divides cumulative distributions by it, RVPI divides remaining value (NAV), and TVPI divides their sum, so TVPI = DPI + RVPI. To check them, rebuild all three from the LP's capital account and compare with the figures the GP reports. A multiple calculated on commitment instead of paid-in, or with fees left out of paid-in, can move by 0.17x or more and change a re-up decision.

This applies when an LP or family office holds a commitment to a closed-end fund that calls capital over time. Evergreen funds and single-deal vehicles need adjustments this article does not cover.

Summary

What are DPI, RVPI and TVPI?

DPI, RVPI and TVPI are the return multiples a closed-end fund reports against the capital its investors have paid in. ILPA's private equity glossary defines DPI as money distributed to LPs relative to contributions, RVPI as the current value of remaining investments relative to contributions, and TVPI as remaining value plus all distributions to date relative to capital paid in.

What they are not

• Not IRR. Multiples ignore time. A 1.5x in four years and a 1.5x in ten years look the same.
• Not MOIC. In our usage, MOIC describes one investment, often gross of fees. TVPI describes a fund or an LP's stake in it.
• Not cash in hand. Only DPI is cash. RVPI rests on the manager's valuation.

What goes into paid-in capital and distributions?

Paid-in capital is the cash an LP has actually transferred to the fund, and distributions are what the fund has paid back; both come straight from the capital account statement. ILPA's glossary describes paid-in capital as committed capital the LP has actually transferred, also called the cumulative takedown. Three items cause most disagreements, in our view: fees, recallable distributions and the NAV date.

• Fees. Management fees are usually paid out of capital calls, so they sit inside contributions. A paid-in figure that leaves them out flatters every multiple. ILPA's Reporting Template v2.0, released in January 2025, promotes more uniform reporting of fees, expenses and carried interest.
• Recallable distributions. Some distributions can be called back by the fund later. ILPA's glossary, which uses the definitions in CFA Institute's GIPS standards, says recallable distributions belong in the numerator of DPI and TVPI, and capital reinvested from them belongs in the denominator of all three.
• NAV date. RVPI and TVPI are only as current as the NAV. Use the NAV and the cash flows to the same date.

How do you calculate DPI, RVPI and TVPI from a capital account?

Calculate DPI, RVPI and TVPI by building paid-in capital and distributions line by line from the capital account, then dividing. The illustrative LP below committed $12.0M to a fund now in year 6. All figures are made up and in $M.

[Figure 1: DPI, RVPI and TVPI rebuilt from a capital account]

Units check: every line is in $M and every multiple is $M ÷ $M, so the result is a plain ratio. If the GP's reported DPI and RVPI do not add up to its reported TVPI within 0.01x of rounding, one of the reported figures is from a different date or basis; ask the GP about the gap in writing within 30 days. The same rebuild sits at the core of quarter-end LP reporting for a GP.

Rebuilding this table for every fund and every LP each quarter turns reporting into a reconciliation exercise. For VC funds, family offices and LPs, Folio's portfolio metrics module covers performance reporting for funds and their LPs. See portfolio metrics in Folio.

Which mistakes move the multiple?

Four mistakes move DPI, RVPI and TVPI. Two of them, using the commitment as the denominator and leaving fees out of paid-in, move TVPI by more than 0.05x, our suggested reconciliation threshold. Each row below starts from the same capital account and changes one input.

[Figure 2: How four mistakes move the multiples]

The commitment mistake is the largest and the easiest to spot: in our view, a TVPI near 1.0x in year 6 alongside healthy distributions points to the wrong denominator. The fee mistake is the most common reason a GP's figure and an LP's own calculation disagree, in our view, because it makes every multiple look better.

What happens when your figure and the GP's disagree?

When a rebuilt multiple and a reported one disagree, ask the GP for a reconciliation before using either number. As our suggested default, a gap above 0.05x in TVPI gets a written question to the GP within 30 days of the report.

In the example, the GP's quarterly report shows a TVPI of 1.67x for this LP. The rebuilt figure is 1.50x. The gap of 0.17x is above 0.05x, and the mistakes table suggests where it comes from: (3.2 + 8.8) ÷ 7.2 = 1.67x, the figure you get when the $0.8M of fees is left out of paid-in.

The difference matters because of what the LP does next. Suppose the family office holding this commitment has an internal rule, for this illustration, that it re-ups with a manager only if its own net TVPI is at least 1.60x by year 6. On the reported 1.67x, the re-up goes ahead. On the rebuilt 1.50x, it fails. The family office puts the re-up on hold, sends the reconciliation question, and decides only once the GP confirms which basis the 1.67x used.

In our view, a net figure that leaves out fees is not a net figure. If the GP's answer is that 1.67x is a gross or "invested capital" multiple, ask for the net LP-level figure alongside it in every future report.

Checking basis and denominator for every fund in a family office portfolio is slow by hand. For VC funds, family offices and LPs, Folio's portfolio metrics module covers performance reporting for funds and their LPs. See how portfolio metrics work in Folio.

How do fund-level and LP-level multiples differ?

Fund-level multiples use the whole fund's paid-in capital, distributions and NAV; an LP-level multiple uses only that LP's own figures. The two can differ when LPs pay different fees, join at different closes or receive different recallable amounts, so an LP should rebuild its own figure rather than read the fund's as its own.

ILPA's Performance Template v1.1 offers two methodologies, Granular and Gross Up, and ILPA says funds commencing operations on or after 1 January 2026 should use it. The two differ in how fund-level gross performance is calculated: from fund-to-investor cash flows with each capital call itemised (Granular), or from fund-to-investment cash flows (Gross Up). In our view, asking a GP which methodology it used, and whether a multiple is net or gross, is a quick first step in any reconciliation.

What reaches DPI also depends on the terms of each exit; an exit waterfall model shows how sale proceeds split between share classes before anything flows to the fund. Multiples also sit beside the other LP reporting metrics that matter beyond IRR in a quarterly report.

When do DPI, RVPI and TVPI mislead?

DPI, RVPI and TVPI mislead when the basis, the valuation or the timing is hidden. In each case below, change what you compare instead of quoting the headline.

A rebuilt multiple confirms the arithmetic, not the valuation behind the NAV. RVPI still depends on the manager's marks.

DPI, RVPI and TVPI checklist

Every quarterly report

Comparing your multiples across funds or LPs every quarter? Rebuild them from the capital account with the checklist above. For VC funds, family offices and LPs, Folio's portfolio metrics module covers performance reporting for funds and their LPs. See portfolio metrics in Folio.

FAQ

Is unfunded commitment part of any of these multiples?

No. Unfunded commitment is capital the LP has promised but not yet paid in, so it sits outside all three ratios. Track it separately for liquidity planning; the commitment line in the example is there only for that.

Should a family office compare its direct deals using TVPI?

For a single company, we suggest MOIC. A family office holding direct positions next to fund stakes can still compare them on one basis by building a net multiple for each from its own cash flows and current values.

What does a DPI above 1.0x tell an LP?

A DPI above 1.0x means the LP has received more cash in distributions than it has paid in, fees included. A later fall in NAV lowers RVPI and TVPI but does not lower DPI, because DPI counts only cash already distributed. In the worked example, DPI is 0.40x: the LP has $3.2M of its $8.0M paid-in back in cash.

Can DPI go down?

Yes, when the fund calls more capital. A new call raises paid-in, the bottom of the ratio, while past distributions stay the same. In the worked example, a further $1.0M call with no new distributions takes DPI from 3.2 ÷ 8.0 = 0.40x to 3.2 ÷ 9.0 = 0.36x.

Should my own costs, such as legal fees, go into paid-in capital?

Not when you compare with the GP's figures. The GP's multiples count only capital paid into the fund. Management fees paid through capital calls still count, as in the worked example. If you want an all-in multiple that includes your own costs, build it separately and label it, so nobody compares it with the GP's number.

About Folio

Folio is Incentiv's fund platform for private market investors: VC funds, family offices and their LPs. It covers deal flow, portfolio, LP and fund management. Its portfolio metrics module covers performance reporting for funds and their LPs. Explore portfolio metrics in Folio.

Thresholds and response times are editorial suggestions, not financial or legal advice. All fund figures are illustrative.