calculate_tvpi
Calculate Total Value to Paid-In capital (TVPI): (distributions + residual value) divided by paid-in capital — the total multiple of a fund or investment including both realised and unrealised value. Formula: TVPI = (Distributions + Residual Value) / Paid-In Capital. WHEN TO USE: Use as the headline multiple for private equity / venture fund performance (equivalent to DPI + RVPI). WHEN NOT TO USE: Do NOT use TVPI to compare funds of different vintages/ages — it ignores the time value of money; combine it with a time-adjusted return analysis for cross-vintage comparison. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero, non-finite inputs, or mathematically undefined combinations return an explicit error instead of a number. RETURNS: JSON object { tvpi: number (e.g. 2.0 = 2.0x total value on paid-in), inputs }. PARAMETERS: distributions (required): Cumulative distributions returned to investors, e.g. 800000. Must be >= 0. residual_value (required): Current fair value of remaining investments, e.g. 1200000. Must be >= 0. paid_in (required): Paid-in capital, e.g. 1000000. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| paid_in | Yes | Paid-in capital, e.g. 1000000. Must be > 0. | |
| distributions | Yes | Cumulative distributions returned to investors, e.g. 800000. Must be >= 0. | |
| residual_value | Yes | Current fair value of remaining investments, e.g. 1200000. Must be >= 0. |