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ROI Calculator

Estimate your true returns from peer-to-peer investments after fees, defaults, and taxes.

Calculate your P2P Investment ROI

Enter your details to estimate your expected returns on P2P investments.

Net ROI (Annualized)

0.00%

Net Return

₹0

Gross Interest₹0

Your Returns Breakdown

Net Profit
Net Return
₹0
Tax
₹0
Platform Fee
₹0
Default Loss
₹0

Peer-to-Peer (P2P) lending offers attractive interest rates compared to traditional fixed-income investments. However, the advertised interest rate is rarely the final return you pocket. To understand the true potential of your investment, you need to look beyond the gross yield.

Real returns are impacted by three main factors: Platform Fees charged for facilitating the loan, Default Rates (borrowers failing to repay), and Taxes on the interest income. Ignoring these can lead to overestimating your profits.

The 1 Finance P2P ROI Calculator helps you factor in these variables. By inputting your expected default rates, recovery estimates, and tax bracket, you can derive a realistic Net ROI, helping you make smarter, risk-adjusted investment decisions.

How Does the P2P ROI Calculator Work?

Our calculator breaks down your returns into four key components to give you a transparent view of your earnings:

  • Interest Rate: This is the gross return you expect from borrowers before any deductions. It serves as the baseline for your earnings.
  • Platform Fee: Most P2P platforms charge a fee for their services, often calculated as a percentage of the interest earned or the principal amount. This is directly deducted from your gross interest.
  • Default Rate & Recovery: Not all loans perform perfectly. The calculator estimates losses based on your expected default rate, while also factoring in any partial recovery of those bad debts.
  • Tax: Finally, the calculator deducts income tax based on the bracket you provide, giving you the final Post-Tax Net Return.

Why Use the 1 Finance P2P ROI Calculator?

Transparency is key to successful investing. Many investors focus solely on the high interest rates offered by P2P platforms, overlooking the inherent risks and costs. Our tool is designed to provide a conservative and realistic estimate of what you can actually expect to take home. By stress-testing your investment against potential defaults and taxes, you can build a more resilient and predictable passive income stream.

Frequently Asked Questions

What is ROI in P2P lending?toggleIcon
ROI (Return on Investment) in P2P lending represents the actual profit you earn on your investment after deducting all costs. These costs include platform fees, losses from borrower defaults, and taxes. A high interest rate doesn't always equal a high ROI if these costs are significant.
How are P2P returns calculated in India?toggleIcon
P2P returns are calculated by taking the gross interest earned from borrowers and subtracting the platform's facilitation fees and any non-performing assets (defaults). The resulting figure is your pre-tax income. To find your final net return, you must also deduct the applicable income tax based on your tax slab.
Is tax included in ROI calculations?toggleIcon
Most basic calculators show pre-tax returns. However, our P2P ROI Calculator explicitly includes a field for your tax bracket to estimate your post-tax ROI. In India, interest income from P2P lending is typically taxed as 'Income from Other Sources' at your marginal tax rate.
What’s the difference between ROI and XIRR?toggleIcon
ROI is a simple measure of total profit relative to initial investment over a period. XIRR (Extended Internal Rate of Return) is a more complex metric that accounts for multiple cash inflows and outflows (like monthly EMIs and reinvestments) occurring at different times. XIRR is generally more accurate for ongoing P2P portfolios.