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Peer To Peer Lending Return Calculator

Work out peer to peer lending return instantly with clear inputs, formula shown and shareable results.

About Peer To Peer Lending Return Calculator

Advertised peer-to-peer yields are gross. Subtracting expected defaults on the principal at risk and the platform's fee gives the return a lender can actually expect, which is often several points below the headline.

Formula

Net P2P return

Net = gross rate - default rate - platform fee (as % of amount lent)

Worked example

With the default values below, Peer To Peer Lending Return Calculator returns Net Annual Return of 10.500%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Lentminimum 0
500,000
Gross Interest Rateaccepts 0–100 %
16 %
Expected Default Rateaccepts 0–40 %
4 %
Platform Feeaccepts 0–10 %
1.5 %

Results

Net Annual Return
10.500%
Net Income
$52,500.00
Expected Credit Loss
$20,000.00
Gross Interest Income
$80,000.00

Step by step

  1. 1Values used
  2. 2Net P2P return
  3. 3Net Annual Return= 10.500
  4. 4Net Income= 52,500.00
  5. 5Expected Credit Loss= 20,000.00
  6. 6Gross Interest Income= 80,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

Why subtract defaults from principal, not interest?

Because a default loses the outstanding principal, which is far larger than the interest it would have paid.

How can default risk be reduced?

Spread across many small loans, favour secured or lower-grade-limited pools, and treat platform-reported default rates cautiously.

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