How do we calculate the yearly return?

We use XIRR methodology (extended internal rate of return). Please note that it is not a forward looking measure. We do not make any assumption on the future repayments of your portfolio.

NB: We start displaying the result of the formula only once you have accumulated at least 1 € of earned interest. Before that, the amounts are too small and the roundings at the closest cent may lead to some weird fluctuations on the %.

This return is computed by using all the cash flows with their exact dates, including purchases of loan, premium and discount if any, repayments of principal and interest, write offs if any and the current outstanding of your portfolio.

Please note that the return is calculated only on the invested funds. Money idle on your Klear account does not bring any revenue.

It’s why we recommend you to regularly visit your dashboard in order to reinvest money received on your loans or to withdraw it from your Klear account.