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[kenL]

Kenl,
  Is there a way to incorporate a calculator to a lenders stats page to make changes from sales or purchases on folio or to include Prosper rebates?

Cheers,
     JGuide

That's a good idea, something to think about. I won't be able to make any such changes though until I got it all running serverside and that's a ways off yet. Before I commit to such a project I'll first try to get a definitive answer from Prosper as to whether they will ever make trading data available.

[kenL]

IIRC, my ROI was about 8% 6 months after starting to lend -- perhaps even longer, actually.  It wound up around -2%.  Six months is WAY too little time to draw any meaningful conclusions. 

And I assume you got that 8% ROI number from ericscc or was it from lendingstats?.

[Fred93]

Maybe when its all said and done I'll try to go back and figure it all out for fun. 

Its pretty easy to compute your ROI.

Just make a list, in Excel, of each transfer you made into your prosper account (as a negative number) and the date, and each transfer out (as a positive number) and the date of same, finally your remaining account value (minus any loans you wish to consider likely to default) and today's date.

Then use the XIRR() function to compute your ROI.

[Your_Bank]

Maybe when its all said and done I'll try to go back and figure it all out for fun. 

Its pretty easy to compute your ROI.

Just make a list, in Excel, of each transfer you made into your prosper account (as a negative number) and the date, and each transfer out (as a positive number) and the date of same, finally your remaining account value (minus any loans you wish to consider likely to default) and today's date.

Then use the XIRR() function to compute your ROI.

Sound easy, I'll give it a try.  But if you have had cash sitting in the account does that drag the ROI down?

[112233]

My "target" ROI has not changed from 12%, but I've lowered my expectation down to just breaking even.

 

We all had targets at some point.

as a lender, mine was on my forehead

[Urbi_et_Orbi]

Maybe when its all said and done I'll try to go back and figure it all out for fun.

Its pretty easy to compute your ROI.

Just make a list, in Excel, of each transfer you made into your prosper account (as a negative number) and the date, and each transfer out (as a positive number) and the date of same, finally your remaining account value (minus any loans you wish to consider likely to default) and today's date.

Then use the XIRR() function to compute your ROI.

Sound easy, I'll give it a try.  But if you have had cash sitting in the account does that drag the ROI down?

Idle money, whether sitting in the account, in payment transfer or pending loan origination - is not earning you anything. It's very easy to under-estimate the impact of all this idle-time. XIRR helps you account for this.

[kenL]

IIRC, my ROI was about 8% 6 months after starting to lend -- perhaps even longer, actually.  It wound up around -2%.  Six months is WAY too little time to draw any meaningful conclusions. 

And I assume you got that 8% ROI number from ericscc or was it from lendingstats?.

Well? Where did this fabled 8% calculation come from? Sources are important you know.

[ira01]

IIRC, my ROI was about 8% 6 months after starting to lend -- perhaps even longer, actually.  It wound up around -2%.  Six months is WAY too little time to draw any meaningful conclusions. 

And I assume you got that 8% ROI number from ericscc or was it from lendingstats?.

Well? Where did this fabled 8% calculation come from? Sources are important you know.

XIRR.

[kenL]

IIRC, my ROI was about 8% 6 months after starting to lend -- perhaps even longer, actually.  It wound up around -2%.  Six months is WAY too little time to draw any meaningful conclusions. 

And I assume you got that 8% ROI number from ericscc or was it from lendingstats?.

Well? Where did this fabled 8% calculation come from? Sources are important you know.

XIRR.

I might just fact check that.

[Urbi_et_Orbi]

There are probably postings on the old forum for you to review regarding XIRR calculations over time.

[kenL]

Well, I went back and calculated what Ira's ROI was on 1/1/08 and it looks like Ira did recall correctly. 8% was within the ROI range that I calculated. Sorry to have doubted you Ira.

[ira01]

Well, I went back and calculated what Ira's ROI was on 1/1/08 and it looks like Ira did recall correctly. 8% was within the ROI range that I calculated. Sorry to have doubted you Ira.

No problem.  And on 1/1/08, I had been a lender for 9 months -- I started in March 2007.  And my last loan was in October, so by January 2008, all of my loans were at least a few months old. 

Looking at Eric's, I see I should have bid lower on the loans I was outbid on.  My what-ifs show only 3 defaults out of 21, compared to my actual loans, with 19 defaults out of 49. 

[Your_Bank]

Maybe when its all said and done I'll try to go back and figure it all out for fun.

Its pretty easy to compute your ROI.

Just make a list, in Excel, of each transfer you made into your prosper account (as a negative number) and the date, and each transfer out (as a positive number) and the date of same, finally your remaining account value (minus any loans you wish to consider likely to default) and today's date.

Then use the XIRR() function to compute your ROI.

Sound easy, I'll give it a try.  But if you have had cash sitting in the account does that drag the ROI down?

Idle money, whether sitting in the account, in payment transfer or pending loan origination - is not earning you anything. It's very easy to under-estimate the impact of all this idle-time. XIRR helps you account for this.

I'm not sure I understand what you are saying, and if you get my point.  If I am calculation the ROI I don't want to include cash that I decided to leave sit in the account because I was to lazy to move, or the 0.8% savings rate didn't give me a compelling reason to move the money.  I had some large sums sitting in my account for a 6-8 weeks and I didn't always transfer money out, so I would need to remove that piece to give me a clearer picture of the ROI.  I don't want to skew the results because I decided not to closely manage the cash balance in my account.

[nonattender]

Maybe when its all said and done I'll try to go back and figure it all out for fun.

Its pretty easy to compute your ROI.

Just make a list, in Excel, of each transfer you made into your prosper account (as a negative number) and the date, and each transfer out (as a positive number) and the date of same, finally your remaining account value (minus any loans you wish to consider likely to default) and today's date.

Then use the XIRR() function to compute your ROI.

Sound easy, I'll give it a try.  But if you have had cash sitting in the account does that drag the ROI down?

Idle money, whether sitting in the account, in payment transfer or pending loan origination - is not earning you anything. It's very easy to under-estimate the impact of all this idle-time. XIRR helps you account for this.

I'm not sure I understand what you are saying, and if you get my point.  If I am calculation the ROI I don't want to include cash that I decided to leave sit in the account because I was to lazy to move, or the 0.8% savings rate didn't give me a compelling reason to move the money.  I had some large sums sitting in my account for a 6-8 weeks and I didn't always transfer money out, so I would need to remove that piece to give me a clearer picture of the ROI.  I don't want to skew the results because I decided not to closely manage the cash balance in my account.

I won't pretend to have read most of this thread, but I think the disconnect between yourself and Urbi is
that he's talking about "your" ROI, and you're talking about the ROI of Prosper as your investment vehicle.

I'm more interested in the latter, as well, though much of the focus here is often "idiosyncratic" in nature.

-t

[Fred93]

If I am calculation the ROI I don't want to include cash that I decided to leave sit in the account because I was to lazy to move, or the 0.8% savings rate didn't give me a compelling reason to move the money.

You get to decide what you compute.  As for me, I always wanted to consider the money sitting idle in the prosper account in the calculation.  For me, when I was seriously investing in prosper loans, I had a huge amount of money tied up in loans waiting to issue, auctions waiting to finish, as well as money waiting for me to bid, and money waiting for the 4 day transfer timeout.  I felt this was an intrinsic part of the prosper investing system, and not my doing, so I wanted to count it.  If this money had not been tied up in prosper earning no interest, it would have been in a money market fund earning several percent (ah those were the days).