### Author Topic: End of Month Return Calculation (Before Statement Date)?  (Read 5742 times)

#### mindbowels

• Newbie
• Posts: 21
##### End of Month Return Calculation (Before Statement Date)?
« on: May 31, 2014, 04:09:52 PM »

Is there any tool that can calculate my monthly return (interest - fees - write offs) in the same way the monthly statement does but that doesn't require me to wait 8 days?

I don't see a way in NSR, is anyone aware of other tools that could do it?

Thanks!

#### jpildis

• Full Member
• Posts: 158
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #1 on: June 01, 2014, 03:48:52 PM »
Here's what I do...

- Each month I record the ending balance and I look at the net change in balance month to month, adjusting for deposits and withdrawals.
- I take that net change and divide it by the total loan balance to get the monthly return
- If you want to annualize it, you add one to the monthly rate, that than number to the 12th power, and then subtract 1. (e.g., if your monthly return was 1% you would write the following foumula in excel =(.01+1)^12-1

#### mindbowels

• Newbie
• Posts: 21
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #2 on: June 01, 2014, 10:09:04 PM »
Here's what I do...

- Each month I record the ending balance and I look at the net change in balance month to month, adjusting for deposits and withdrawals.
- I take that net change and divide it by the total loan balance to get the monthly return
- If you want to annualize it, you add one to the monthly rate, that than number to the 12th power, and then subtract 1. (e.g., if your monthly return was 1% you would write the following foumula in excel =(.01+1)^12-1

Yeah, good point, I guess if I actually recorded the start balance and keep track of deposits that would be the easiest way....

#### BruiserB

• Sr. Member
• Posts: 417
##### End of Month Return Calculation (Before Statement Date)?
« Reply #3 on: June 01, 2014, 10:32:34 PM »

Here's what I do...

- Each month I record the ending balance and I look at the net change in balance month to month, adjusting for deposits and withdrawals.
- I take that net change and divide it by the total loan balance to get the monthly return
- If you want to annualize it, you add one to the monthly rate, that than number to the 12th power, and then subtract 1. (e.g., if your monthly return was 1% you would write the following foumula in excel =(.01+1)^12-1

Yeah, good point, I guess if I actually recorded the start balance and keep track of deposits that would be the easiest way....

Well your start balance is last month's ending balance. Your statements are online in your account info and they also show your deposits. :-)

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#### GS

• Sr. Member
• Posts: 413
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #4 on: June 04, 2014, 09:48:35 PM »
I would like to see LC offer more personal return stats than just NAR since the start of the portfolio.  Much like you can view with stocks, bonds, funds, I'd like to see returns for 1 week, 1 month, 6 month, YTD, 12 months, and 3 year & 5 year annualized.  They probably don't want to do that because most investors would see their returns diminish at each increment, as charge offs grow, but that info is something I'm accustomed to seeing on other investments, and is very helpful when planning for the long term.

I keep track, every Friday, of the balances of my LC and other accounts in a spread sheet, so I can calculate this myself, I suppose, but it should be here.

#### Randawl

• Sr. Member
• Posts: 469
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #5 on: June 05, 2014, 12:12:44 AM »
I would like to see LC offer more personal return stats than just NAR since the start of the portfolio.  Much like you can view with stocks, bonds, funds, I'd like to see returns for 1 week, 1 month, 6 month, YTD, 12 months, and 3 year & 5 year annualized. They probably don't want to do that because most investors would see their returns diminish at each increment, as charge offs grow, but that info is something I'm accustomed to seeing on other investments, and is very helpful when planning for the long term.

I keep track, every Friday, of the balances of my LC and other accounts in a spread sheet, so I can calculate this myself, I suppose, but it should be here.

What they really don't want investors to see is the effective yield over the last several months of a portfolio that is winding down.

#### rawraw

• Hero Member
• Posts: 2756
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #6 on: June 05, 2014, 05:35:22 AM »
I would like to see LC offer more personal return stats than just NAR since the start of the portfolio.  Much like you can view with stocks, bonds, funds, I'd like to see returns for 1 week, 1 month, 6 month, YTD, 12 months, and 3 year & 5 year annualized.  They probably don't want to do that because most investors would see their returns diminish at each increment, as charge offs grow, but that info is something I'm accustomed to seeing on other investments, and is very helpful when planning for the long term.

I keep track, every Friday, of the balances of my LC and other accounts in a spread sheet, so I can calculate this myself, I suppose, but it should be here.
What's the point of tracking a fixed income loan portfolio that way that doesn't have readily determined market values?  Vintage analysis would be more useful

#### hessinger

• Newbie
• Posts: 39
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #7 on: November 03, 2015, 04:58:13 PM »
Not sure this is a suitable thread, but the title was right.

I was looking at some of my monthly statements, and I can't seem to figure out what lending club is doing to determine the earning's summary.

The calculation seems like it should be quite simple.

(Edit: substitute Earnings before for sleepily entered return)
Return Earnings = Closing Balance - Opening Balance - Deposits + Withdrawals

Yet according to my last 4 statements, the earnings calculation from above doesn't ever work out? Lending club's figure ranges wildly from -3% to +8% different from above? What am I missing? I assumed the fee's and other misc. would be already factored into the closing balance.
« Last Edit: November 03, 2015, 11:08:54 PM by hessinger »

#### AnilG

• Hero Member
• Posts: 1079
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #8 on: November 03, 2015, 05:19:36 PM »
You can use PeerCube for Daily, Rolling 30-days, Monthly, Yearly, and Cumulative since Inception Returns.

Cumulative since Inception, Yearly and Monthly Returns are estimated from beginning and ending balances and cash deposits/withdrawal listed on Lending Club monthly statements. So, these returns take into consideration cash inflow and outflow.

Daily and Rolling 30-day returns are estimated from change in account value obtained through Lending Club API. You will need to provide API credentials. As cash inflow/outflow information is not available through API, these returns don't take into account cash inflow/outflow.

https://www.peercube.com/portfolio/index
https://www.peercube.com/portfolio/monthly_returns
https://www.peercube.com/portfolio/daily_returns
https://www.peercube.com/portfolio/monthly_statement
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

#### Fred93

• Hero Member
• Posts: 2101
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #9 on: November 03, 2015, 05:27:05 PM »
I was looking at some of my monthly statements, and I can't seem to figure out what lending club is doing to determine the earning's summary.

The calculation seems like it should be quite simple.

Return = Closing Balance - Opening Balance - Deposits + Withdrawals

I'm confused by your use of the word "return".  If we substitute EARNINGS where you wrote "return", then it makes sense to me.

And yes, I see the same thing.  Seems like something is being counted in a slightly different way, perhaps with a different cutoff date.  (I'm guessing.)

#### Fred93

• Hero Member
• Posts: 2101
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #10 on: November 03, 2015, 06:56:31 PM »
Quote
the figures in the earnings summary on page 1 do not include: service fees, recovery fees, collection fees, recoveries, and credits. Those are itemized on page two. Once you add/subtract those figures into the \$XXXXXX, you’ll see that the net number is \$XXXXXX .

#### hessinger

• Newbie
• Posts: 39
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #11 on: November 30, 2015, 10:02:53 PM »
Quote
the figures in the earnings summary on page 1 do not include: service fees, recovery fees, collection fees, recoveries, and credits. Those are itemized on page two. Once you add/subtract those figures into the \$XXXXXX, you’ll see that the net number is \$XXXXXX .

Their website is terribly confusing. Since I started recording daily account values, I noticed in the last three months, on the very last day of the month, a substantial chunk of account value evaporates. I assume this is their fees. However, if you were to follow the account activity page, you would definitely get the impression that those fees are being deducted from the account as activity is happening.

#### Fred93

• Hero Member
• Posts: 2101
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #12 on: November 30, 2015, 10:17:44 PM »
Their website is terribly confusing. Since I started recording daily account values, I noticed in the last three months, on the very last day of the month, a substantial chunk of account value evaporates. I assume this is their fees.

LC takes out fees every day that payments arrive.  Important what TIME OF DAY you look at the web site.  They usually take out the fees some time between 6PM and 6:30PM Pacific Time, and then deposit that day's payments a bit later.  Usually by 7PM both fees and payments have posted.  If you want to record daily account values, I suggest you do it after 7PM PT.

Perhaps what you are seeing monthly is chargeoffs?

#### RaymondG

• Full Member
• Posts: 247
##### Re: End of Month Return Calculation (Before Statement Date)?
« Reply #13 on: November 30, 2015, 10:56:54 PM »
I noticed in the last three months, on the very last day of the month, a substantial chunk of account value evaporates. I assume this is their fees. However, if you were to follow the account activity page, you would definitely get the impression that those fees are being deducted from the account as activity is happening.
My LC account value would decrease due to those sold but still pending notes in Folio until they were cleared.

#### BruiserB

• Sr. Member
• Posts: 417
##### End of Month Return Calculation (Before Statement Date)?
« Reply #14 on: December 01, 2015, 05:48:48 AM »