PE Fund Performance Calculator: TVPI, DPI & Carry Status

Enter your fund's current metrics — called capital, distributions to date, and residual NAV — to calculate DPI, RVPI, and TVPI in seconds. The calculator then runs a simplified European waterfall to show whether your carried interest is in the money today, and estimates your personal after-tax carry under IRC § 1061.

Understanding PE fund performance metrics

DPI — Distributions to Paid-In

DPI measures how much cash the fund has returned to LPs as a multiple of called capital. A DPI of 0.8× means LPs have received back 80 cents on every dollar invested. DPI is the only realized performance metric — money that has actually left the fund and been distributed to investors. A fund can report a high TVPI driven entirely by unrealized NAV appreciation while DPI remains zero, meaning LPs have received no cash and all gains exist only on paper.

For US buyout funds at 5–7 years of age, a DPI of 0.8–1.2× is typical depending on realization pace. A DPI above 1.0× before fund termination signals that meaningful exits have occurred and suggests the carry waterfall has likely been triggered.

RVPI — Residual Value to Paid-In

RVPI is unrealized value: the portfolio's current NAV divided by called capital. Fund manager marks are typically audited annually under GAAP fair value accounting (ASC 820) but still involve significant judgment — particularly for portfolio companies without recent comparable transactions. RVPI represents paper wealth; it becomes real only when portfolio companies are sold, recapitalized, or refinanced. PE fund NAVs are also inherently lagged: marks often reflect valuations from the prior quarter's audit cycle.

TVPI (MOIC) — Total Value to Paid-In

TVPI equals DPI + RVPI. It is identical to MOIC (Multiple on Invested Capital). A 2.0× TVPI means the fund has returned or retained value equal to twice the LP capital invested. TVPI is the most widely cited PE performance multiple in LP reports and GP fundraising materials. As a rough benchmark for US buyout funds at approximately 5–7 years: top quartile TVPI is typically 1.7–2.2×, median around 1.4–1.6×, and bottom quartile 1.0–1.3× per Cambridge Associates benchmark data.⁴ Venture funds show far more dispersion and much higher top-quartile multiples.

Implied CAGR vs. actual IRR

This calculator shows an implied CAGR — the TVPI annualized over fund age using a simple compounding formula (TVPI^1/age − 1). This is not the same as the fund's IRR. True IRR requires the full cash flow schedule: when each capital call was made and when each distribution was received. Because capital is typically called over 3–5 years and distributions are back-loaded to years 4–8, the true IRR is generally 3–7 percentage points higher than implied CAGR for the same TVPI (the J-curve effect). Your fund administrator provides the true IRR on your quarterly capital account statement; the CAGR here is a directional check only.

When does carry become payable?

In a European waterfall (whole-fund model), carried interest is not paid to the GP until LPs have received:

1. Return of capital: All called LP capital returned in full.
2. Preferred return: LPs receive a compounded preferred return — typically 8% per year — on their contributed capital for the period it was invested.
3. GP catch-up: The GP receives 100% of subsequent distributions until its total profit share equals exactly carry% of all profits above capital (assuming a full 100% catch-up provision).
4. Remaining split: Profits above the catch-up split at the carry rate — e.g., 20% GP / 80% LP.

The minimum TVPI required to trigger carry depends on hurdle rate and fund age. For an 8% hurdle over 6 years, LP capital + preferred return equals approximately 1.59× per dollar of LP capital. After accounting for the GP's own capital return, the whole-fund TVPI required before any carry is owed is typically in the 1.5–1.7× range for a 5–7 year fund — a number this calculator shows for your specific inputs.

IRC § 1061 and your carry tax rate

Under § 1061 (enacted by TCJA 2017), carried interest gains are recharacterized as short-term capital gain — taxed at ordinary income rates (37% + 3.8% NIIT = 40.8% federal for 2026) — unless the underlying fund assets were held for more than three years.¹ Assets held more than three years qualify for long-term capital gains rates (20% + 3.8% NIIT = 23.8% federal for 2026).²

The § 1061 three-year test runs per portfolio company at the fund level, not at the fund vintage level. A company sold 2.5 years after acquisition generates short-term carry — even if the fund itself has been running for 7 years. In practice, most typical buyout hold periods (4–6 years) generate entirely LTCG-qualified carry. The main exceptions are early realizations, dividend recaps, or quick flips within the first three years of portfolio company ownership.

There is also a separate three-year test applied to your profits interest grant date. If your carry was granted after the fund had already acquired certain assets, those assets may fall below the three-year threshold relative to your grant even if they exceed it relative to fund vintage. This is a common planning trap for principals and partners who received carry grants mid-cycle. A PE-specialist tax advisor can model your blended effective § 1061 rate across your specific grant and fund vintages.