Net Returns Calculations

How do we calculate Net Returns on

Watch as our Systems Accountant, Huw Dyne, explains our calculation method in this clear and concise video:

To calculate the annualised net return shown on your dashboard, we consider the return generated from the capital employed for each period. A period is defined as the number of days that pass in which the capital employed remains constant.

How does it work?

Uninvested cash earns zero interest. So any available cash not on loan will reduce your Net Returns.

Every portfolio is different, and historic performance is not indicative of future performance.

Defaulting loans are proportionally marked-down in the Net Return calculation; until either recovered or crystalised as a bad debt.

Compounding your returns by lending your interest earnings is one of the best ways to maximise your returns.

You should periodically check your individual Net Return performance against the histogram of all lenders, available on the stats page. This will help you to understand your performance in context with other lenders. If you feel that your portfolio is underperforming, compared to other lenders, please read more articles from our lender education section, or email us asking for a review of your account.

Understand the Risks: When lending, your capital is at risk | P2P Investments are not covered by the FSCS | Past returns are not an indication of future returns | Find out more about the risks of P2P lending