Total Value to Paid-in-Capital (TVPI) or Multiple of Invested Capital (MOIC)

« Back to Glossary Index

Total Value to Paid-In-Capital (TVPI) or Multiple of Invested Capital (MOIC) tell us of how much money you’re getting back from your initial investment. RVPI is of use to venture capital firms and investors investing into VC funds.You can also use this ratio to evaluate your own investments. The formula for calculating TVPI is by dividing total value by paid-in-capital (Total Value/ Paid-In-Capital). To get Total Value, you add fair value to total cash realized; while the Paid-In-Capital is the total invested amount. TVPI gives us the estimated return per dollar invested. For example, a TVPI multiple of three (3) means if all investments close an investor gets three (3) shillings back for every shilling invested. A higher TVPI is higher is better but just as we saw with DPI and RVPI, this metric does not include time and therefore does not provide the full picture.


Kindly note that this is not financial advice.Our website services, content and products are for general informational and educational purposes only and is not a substitute for professional advice. We remind our readers to be careful with their money.You should NOT rely upon the information or opinions you read. Preferably, you should use what you read here as starting points for doing independent research on companies, products and investing techniques. Then judge for yourself the worthiness of the material that has been shared in our website.

« Back to Financial Terms Dictionary