Quote Originally Posted by IntheRearWithTheGear View Post
For example $1 dollar invested in c2 loan at 22.99%, 15% percent harm fee, 17.5 tax could be worth 83 cents in interest but according to the above site its worth much more ie $2.16 if compounding is used.
There shouldn't be a problem calculating return rate for a month on a single (or group of) loan(s) and then plugging that into a compounding 'calculator'/calculation, however it won't take into consideration defaults unless you use some average value or rely on Harmoney's suggested default rates.

My current 'guage' for the value of my current loans is to calculate the return for 1 day using interest, tax, fee rates on each loan and then applying a historical default rate window, at grade level and annualising that. I believe it gives me a fair snapshot indication of the return/value of my current loans with as up-to-date default rates as I can confidently calculate.

At a portfolio level, in my opinion, an XIRR calculation is still the best calculation to use, as it takes into consideration all ins and outs, but it is total portfolio value from the start, so is 'slow' to show more recent changes and is not a prediction of future value - but that should be obvious.