Saturday, April 26, 2008

I just calculated my IRR

I spent most of the day (apart from the time working in the garden (under duress!), cycling with my daughter, and having a leaf burning that turned into a campfire) calculating my cashflow in and out of Prosper and my projected IRR using Excel's XIRR function.

In total, I've transferred $9,385.12 into Prosper. To date I've transferred $4,951.47 back out. According to Prosper, my current account value is $ 5,609.47. The latter amount includes the loan values for late loans (even if they are in bankruptcy status) as well as accumulated interest. If I adjust my account value (optimistically) to account for lates and accrued interest I will most likely never see, then I estimate my account value to be $ 4,905.60.

Just in total then, my Prosper investment since May 2006 can be valued at about 11% more than I've put into it. Calculating the IRR value yields 4.94%. That's disappointing. For those lenders out there that use Lendingstats and Erics for ROI figures, my Lendingstats ROI is 10.11% and my Eric's ROI is 6.05%.

I'd post the spreadsheet I used to calculate my IRR, but it's a multi-sheet Excel spreadsheet and I can't upload that to Google Spreadsheets and I don't want to go to the hassle of putting it somewhere else right now, so you'll just have to trust me that I worked it out correctly. I did look at RateLadder's XIRR spreadsheet that I downloaded ages ago, as well as my previous XIRR worksheet, so I'm pretty much sure I'm more or less right.


2 comments:

j9359 said...

It is kind of interesting that your LS ROI and Eric's are so far apart at this point. For me they have been converging but are still way above what I calculate using XIRR.

Anonymous said...

I see same thing on my account. Unfortunately, the hack calculation methods that LS and Erics use seem to be diverging from reality over time. They're now way off.