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ROI Calculator

Estimate your true returns from peer-to-peer lending.

Your Lending Details

For Principal

₹5,00,000

Monthly Cash-inflow

₹0

Principal Amount
Interest Rate (p.a.)
Lending Period

Your Returns Overview

Gross Interest

(Without re-lending)

₹0

Gross Interest

(With re-lending)

₹0

XIRR

0.00%

Monthly Cash-inflow

₹0

Without re-lendingWith re-lending
Principal₹5,00,000₹5,00,000
Gross Interest₹0₹0
Total Repayment₹0₹0

Peer-to-Peer (P2P) lending offers attractive interest rates compared to traditional fixed-income returns. However, the advertised interest rate is rarely the final return you pocket. To understand the true potential of your return, you need to look beyond the gross yield. Real returns are impacted by three main factors: charged for facilitating the loan, (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 return 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?

1

Look Beyond Interest Rates

Add loan amount, interest rate, and tenure.

2

Understand Your True Returns

Our tool is designed to provide a conservative and realistic estimate of what you can actually expect to take home.

3

Test Your Returns

We test your returns against potential defaults and taxes to give you a more realistic view of your expected income.

4

Build More Predictable Income

By considering potential defaults and taxes, you can build a more resilient and predictable passive income stream.

Got any more questions?

Here’s a list of a few common questions that might help. If you have any other questions, you can email or text us on WhatsApp.

ROI (Return on Interest) in P2P lending represents the actual profit you earn on your lending 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.
P2P returns are calculated by taking the gross interest earned from borrowers and subtracting the platform's fees & Charges 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.
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.
ROI is a simple measure of total profit relative to initial lending 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 subsequent lending) occurring at different times. XIRR is generally more accurate for ongoing P2P portfolios.
Re-lending is the practice of taking the EMIs you receive from existing loans — both the principal and interest portions — and lending them out again instead of withdrawing them. Because your earned interest is put back to work, it can start generating further earnings, which is the basis of compounding. Each re-lent amount funds a new loan, subject to borrower availability and the platform's matching policy.
When you withdraw an EMI, only your original principal was ever earning. When you re-lend it, the interest you've already earned is added to the amount that's working for you, so future earnings are calculated on a larger base each month. Over a longer tenure, these repeated cycles are what create the gap between the two gross-interest figures shown above — without re-lending and with re-lending. The size of that gap depends entirely on the rate, tenure, and repayment assumptions you enter.
No. The numbers shown are illustrative estimates based on the assumptions you provide and assume timely repayment with no defaults. P2P lending is subject to risk, including the possible loss of principal and interest, and the entire risk is borne by you as the lender. As per RBI directions, no P2P platform can offer assured returns, guarantees, or liquidity commitments.

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Make smarter borrowing & lending decisions

Using calculators helps you plan repayments, understand your affordability, and evaluate potential outcomes before applying or lending. These tools ensure transparency, responsible borrowing, and informed decision-making on the 1 Finance P2P platform.

Plan your EMIs before committing to a loan

Know your eligibility based on income and obligations

Understand potential returns as a lender

Make data-driven financial decisions

Ready to take the next step?