Work out peer to peer lending return instantly with clear inputs, formula shown and shareable results.
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.
Net P2P return
Net = gross rate - default rate - platform fee (as % of amount lent)
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.
Because a default loses the outstanding principal, which is far larger than the interest it would have paid.
Spread across many small loans, favour secured or lower-grade-limited pools, and treat platform-reported default rates cautiously.