Measuring P2P returns this simple way

  • Hi everyone, wanted to check if it is a bad method to just rely on the following figures as metrics for our performance in P2P financing:

    Net Income - Principal Defaulted = x

    And then calculate my ROI as:

    x / Total Principal Invested * 100% = y (p.a. yield)

    to compare with other 'instruments', and general performance across time?

    Extra note: I do not withdraw and deposit often.

    Do I end up overlooking anything important here?

  • Emergent

    Income and defaulted for the year or lifetime?

    Some like to include tax but I don’t since it’s not a fixed amount for me.

    I prefer this method to account for deposits and withdrawal.


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