Actually in all this I thought the percentage of Expected Monthly Payments (EMP) to the Outstanding Principle (OP) at each grade was more interesting than my attempt to duplicate the EMP using the PMT function. I have separate portfolio names for "grades and terms" for my Bluevest-n-P2PPicks notes as well as my LendingRobot notes. Since the portfolio name is on many of the LC user interface tables it is nice to see where this note came from at a glance (ie. in the default list). Plus I can do some of the above calcs on a fine breakdown.

Sorry Scott, I'm with rawraw; confused; especially with what you think you see in the ratio you define above.

Pretend instead of a group of loans you are looking at a single loan. The loans payments are always the same and the outstanding principal is reduced with each payment. So the ratio get larger each month. Exactly what the ratio is is a fixed by the term, interest rate, payment amount, and how many payments have already been made. To see anything meaningful in this number you would have to know the age of loan(s) (# of payments) but that is not even in you table?

Are we missing something?

I reject your reality and substitute my own. <grin> I appreciate both your guys patience. I'm am seeing flaw in my calcs because I don't have some details like term. However, I really started this thread thinking people may play with their own Portfolio tab information where they would have some idea of the the terms they use. I thought some people would have already played with this information like I did and would share some of their calcs. Perhaps it is too generalized of information to gain insight from.

I realize I was working with some generalizations when I use the outstanding principle (OP) but I absolutely was not trying to think of it as a single loan with varying principal. Instead I was thinking with all the notes that it would be an

**ongoing average of principle** (see

blue box in graphic below) assuming you have new notes coming in with high outstanding principle and existing notes getting older with low outstanding principle.

I thought on such a large and older LC account that I was seeing a way to roughly estimate cashflow (Expected Monthly Payments (EMP)).

I think in the back of my head it was along the lines of this old post by Fred93 that I recalled (and just now re-found in a search).

Once your money is invested in loans every month (actually daily) some amount will be returned to your cash account as earned interest and principal paid. If your average loan return is 10%, monthly approximately 1% of your total notes will be back in your cash account. If you need a small amount of money, this can be withdrawn easily.

Agree with the principal. The amount is higher tho.

Suppose you have a mix of 36 month and 60 month loans. Lets call the average 48 months. Your entire principal is paid back over 48 months, so principal alone averages a little more than 2% per month. (ie 1/48 = about 2%) On top of that there's interest, which might be nearly another 1% per month. Then a significant fraction of borrowers pay off early, so in practice there's even more, maybe another 0.5% **That adds up to around 3.5%/month cash becoming available. **

If you recycle this money by buying new loans, it continues. If you take it out or fail to reinvest it, then the amount coming out goes down each month.

This is of course a cash flow calculation, not a returns calculation.

Obviously this is for 36 month term but if you constantly purchased new notes then I thought your

**ongoing average of principle** for your account ought be consistent. The blue box is just showing the generalized area and concept of an average principle.