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Return on investment is a percentage determination of how much profit you earn from any given investment. For Prosper.com users, its relatively easy to determine ROI by using a simple formula and the Prosper.com website.

First of all, here is the formula:

(Net Gain/Total Account Value) x 100

Below you can see were to get these figures in red.

Divide your net gain by the total account value and then multiply that by 100. This will give you a snapshot of your ROI. If we plugged some real numbers into this formula, we would see:

(1000/5000)*100 = 20, or a 20% ROI.

To determine your own ROI, log in to your Prosper account, navigate to “Your Account”, then “Lending”, then plug the following 2 numbers into the formula above:

To find “Net Gain”, use this value:

To find “Total Account Value” use this value:

This gives you a current ROI, meaning what you have actually earned as of the moment you perform this calculation. It’s also possible to project your end year ROI by using this calculation.

5 comments:

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