P2P Lending ROI Calculator

Calculate your peer-to-peer lending returns with compound interest projections, platform fees, and detailed growth analysis.

Compound Interest
Platform Fees
Growth Projections

Calculator Inputs

$
$
%
years
%
%

Historical P2P default rates typically range from 1-8%

Automatically reinvest interest payments for compound growth

How to Calculate P2P Lending Returns

Our P2P lending ROI calculator uses advanced compound interest formulas to provide accurate projections of your peer-to-peer lending investments. Understanding how returns are calculated helps you make informed investment decisions.

Compound Interest Formula

The calculator uses the compound interest formula with regular contributions:

A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
  • A = Final amount
  • P = Principal investment
  • r = Annual interest rate (as decimal)
  • n = Number of times interest compounds per year
  • t = Time in years
  • PMT = Regular payment amount

Platform Fees Impact

Most P2P lending platforms charge service fees that reduce your effective returns. Our calculator accounts for:

  • Annual platform fees (typically 0.5% - 1.5%)
  • Payment processing fees
  • Collection fees on defaults
  • Withdrawal or transfer fees

Key Factors Affecting Returns

  • Default rates: Higher default rates reduce overall returns
  • Diversification: Spreading investments across many loans reduces risk
  • Loan grades: Higher-grade loans offer lower but more stable returns
  • Reinvestment: Automatically reinvesting repayments compounds growth
  • Platform selection: Different platforms offer varying fee structures and returns

Using the Calculator Results

The calculator provides several key metrics to help you evaluate your P2P lending strategy:

  • Final Balance: Your total investment value after the time period
  • Total Earnings: Interest earned minus fees and estimated defaults
  • Effective Annual Return: Your actual return rate after all costs
  • Monthly Income: Projected monthly cash flow from your investment

Disclaimer: These calculations are estimates based on historical data and assumptions. P2P lending involves risk, including potential loss of principal. Past performance does not guarantee future results. Always diversify your investments and consult with a financial advisor.