Loan KPIs Calculations

Last updated: May 7, 2026

Overview

Hypercore calculates three key performance indicators (KPIs) for loans to help lenders assess investment performance: IRR (Internal Rate of Return), TVPI (Total Value to Paid-In, also known as Investment Multiple), and DPI (Distributions to Paid-In, also called Realized Multiple). Each KPI is calculated in two variants: Current (based on actual transactions to date) and Expected (including future projected cash flows).

Key Concepts

Current (Realized) vs Expected Calculations

  • Current (Realized) KPIs: Based on actual transactions that have occurred up to today, plus current outstanding balances.

  • Expected KPIs: Include both actual transactions and future expected cash flows based on the loan schedule.

Equity Integration

When equity investments are associated with a loan, Hypercore includes equity transactions and valuations in KPI calculations. This provides a comprehensive view of total investment performance.

IRR (Internal Rate of Return)

IRR measures the annualized rate of return on an investment, accounting for the timing of cash flows.

IRR Current (also called Realized IRR)

Formula: Calculated using the XIRR function on actual cash flows to date plus current outstanding balance.

Cash Flows Included:

  • All actual disbursements (negative cash flows)

  • All actual repayments (positive cash flows)

  • Current outstanding balance as of today (positive cash flow)

  • Equity transactions (buys as negative, sells/returns as positive)

  • Current equity holdings value

Example:

Loan disbursement: -$100,000 (Jan 1)
Repayment: +$20,000 (Mar 1)
Repayment: +$25,000 (Jun 1)
Current outstanding: +$60,000 (today)

IRR Current = 12.5%

IRR Expected

Formula: Calculated using the XIRR function on actual cash flows plus future expected cash flows.

Cash Flows Included:

  • All actual disbursements and repayments

  • Future expected repayments from the loan schedule

  • Future expected disbursements (if applicable)

  • Equity transactions (actual and expected)

  • Expected equity income/expenses

Example:

Actual disbursement: -$100,000 (Jan 1)
Actual repayments: +$45,000 (to date)
Expected repayments: +$65,000 (future)

IRR Expected = 15.2%

TVPI (Total Value to Paid-In, also called Multiple on Invested Capital - MOIC)

TVPI measures the total value returned relative to the total amount invested, including both realized and unrealized gains.

TVPI Current (also called Gross Realized Multiple)

Formula: (Total Payments + Outstanding Balance + Equity Values) ÷ Total Disbursements

Components:

  • Total Payments: Principal, interest, and fees received to date

  • Outstanding Balance: Current principal, interest, and fees outstanding

  • Equity Values: Current market value of equity holdings

  • Total Disbursements: Total amount disbursed to date

Example:

Total disbursed: $100,000
Total payments received: $45,000
Current outstanding: $60,000
Equity current value: $5,000

TVPI Current = ($45,000 + $60,000 + $5,000) ÷ $100,000 = 1.10x

TVPI Expected

Formula: (Total Expected Payments + Equity Expected Values) ÷ Total Expected Disbursements

Components:

  • Total Expected Payments: All actual and future expected payments

  • Equity Expected Values: Expected future equity income

  • Total Expected Disbursements: All actual and future disbursements

Example:

Total disbursed: $100,000
Total payments (actual + expected): $110,000
Expected equity income: $10,000

TVPI Expected = ($110,000 + $10,000) ÷ $100,000 = 1.20x

DPI (Distributions to Paid-In, also called Realized Multiple)

DPI measures the ratio of total distributions received to the total amount invested, focusing on realized returns.

DPI

Formula: Total Payments ÷ Total Disbursements

Components:

  • Total Payments: Principal, interest, and fees received to date

  • Total Disbursements: Total amount disbursed to date

  • Equity Income: Actual equity income received

Example:

Total disbursed: $100,000
Total payments received: $45,000
Equity income: $5,000

DPI Current = ($45,000 + $5,000) ÷ $100,000 = 0.50x

Important Notes

Currency Conversion

  • All calculations are performed in the loan’s target currency

  • Equity transactions are converted to the loan currency using exchange rates as of the transaction date

  • Current equity values are converted using current exchange rates

Early Loan Termination

  • If a loan is terminated early (early redemption or write-off), the system uses current calculations instead of expected calculations

  • This ensures KPIs reflect actual performance rather than projections

Fee Inclusion

  • IRR calculations include fees by default; this can be configured.

  • Outstanding balance calculations include principal, interest, compounding interest, and fees

Data Sources

  • Schedule Data: Based on loan schedule rows (disbursements, repayments, expected transactions)

  • Equity Data: From equity transactions, valuations, and expected transactions

  • Summary Data: Aggregated values from loan schedule summaries

Interpreting KPI Results

IRR Interpretation

  • Positive IRR: Investment is generating returns

  • Higher IRR: Better annualized returns

  • IRR vs Cost of Capital: Compare to your funding costs

  • Current vs Expected: Shows realized vs projected performance

TVPI Interpretation

  • TVPI > 1.0x: Total value exceeds investment

  • TVPI = 1.0x: Break-even point

  • TVPI < 1.0x: Total value below investment

  • Current vs Expected: Shows realized vs potential total returns

DPI Interpretation

  • DPI > 1.0x: More cash returned than invested

  • DPI = 1.0x: All capital returned

  • DPI < 1.0x: Partial capital return

  • Current vs Expected: Shows realized vs projected cash returns

Combined Analysis

  • High IRR, Low DPI: High returns but mostly unrealized

  • Low IRR, High DPI: Lower returns but good cash flow

  • High TVPI: Strong total value creation

  • Equity Impact: Equity can significantly boost total returns

Troubleshooting KPI Calculations

Below are common KPI issues, symptoms, causes, and solutions to help resolve inconsistencies in your metrics.

If your KPI values appear incorrect or inconsistent, here are some quick steps to help diagnose and resolve common issues:

  • IRR issues: Download the amortization schedule and use Excel’s XIRR function on disbursements and repayments to verify calculations. Ensure equity cashflows are included if applicable.

  • TVPI/DPI issues: Manually sum repayments and equity cashflows. Use the formulas in this guide to confirm expected results.

  • Equity discrepancies: Check that all equity transactions, valuations, and expected events are correctly recorded and in the correct currency.

  • Still stuck? Contact Hypercore support for assistance—our team can help verify data integrity and ensure the calculation setup is correct.

Unexpected IRR Values

Symptoms: IRR appears unusually high (>9999%) or negative

Possible Causes:

  • Insufficient cash flow data for XIRR calculation

  • All cash flows in same direction (all positive or all negative)

  • Missing or incorrect transaction dates

  • Currency conversion issues

Solutions:

  • Verify loan has both disbursements and repayments

  • Check transaction dates are properly set

  • Ensure currency conversion rates are available

  • Review equity transaction data if applicable

TVPI vs DPI Discrepancies

Symptoms: TVPI significantly different from DPI

Possible Causes:

  • Large outstanding balance (TVPI includes unrealized value)

  • Significant equity holdings value

  • Expected vs current calculation differences

Solutions:

  • This is normal - TVPI includes unrealized gains while DPI only includes realized cash

  • Review outstanding balance amounts

  • Check equity valuations and expected income

Equity-Related Issues

Symptoms: KPIs don’t reflect equity components

Possible Causes:

  • Equity transactions not properly linked to loan

  • Missing equity valuations

  • Currency conversion failures

  • Invalid equity transaction types

Solutions:

  • Verify equity is properly associated with the loan

  • Ensure equity valuations are current

  • Check currency conversion rates for equity transactions

  • Review equity transaction data for completeness

Currency Conversion Problems

Symptoms: KPIs seem incorrect for multi-currency loans

Possible Causes:

  • Missing exchange rates for transaction dates

  • Incorrect currency conversion calculations

  • Outdated exchange rate data

Solutions:

  • Verify exchange rates are available for all transaction dates

  • Check currency conversion settings

  • Update exchange rate data if needed

  • Review target currency settings

Data Quality Issues

Symptoms: KPIs show null values or calculation errors

Possible Causes:

  • Missing required loan data

  • Invalid transaction amounts

  • Missing equity information

Solutions:

  • Verify all required loan fields are populated

  • Check transaction amounts for validity

  • Ensure equity data is properly configured

This guide provides the foundation for understanding how Hypercore calculates and presents loan performance metrics. For specific questions about your loan portfolio, consult with your Hypercore administrator or support team.