I invested 102€ on a P2P site on a business loan. Here are the details of the loan:

  • Issue date: 18.01.2020 (DD//MM/YYYY date format)
  • Maturity date: 18.03.2020
  • Interest rate: 13% annually.

I bought in on 29.01.2020. The total interest I got from the loan was 1.78€.

How I thought it was calculated:


In my case: 102x13/(100*4) = 3.315€

What is the actual formula for calculating P2P lending interest?

  • 1
    It depends on the term of the loan. How often does it compound? Are payments made periodically or only at the end of the loan?
    – D Stanley
    Mar 20, 2020 at 13:19
  • @DStanley hi, payments are made periodically. I got 0.73€ on 18.02, and 1.05€ on 19.03. I got the principal back on 19.03.
    – Snow
    Mar 20, 2020 at 13:23
  • 1
    I am confused. You mention 18.01.2020 to 18.03.2020 or two months. Then you include 4 months in your formula, but in your example calculate you use 3 months. Mar 20, 2020 at 13:24
  • @mhoran_psprep sorry I had to add the division sign to the formula.
    – Snow
    Mar 20, 2020 at 13:26
  • @mhoran_psprep I just simplified the franction. 3/12 = 1/4. Should I change it to 3/12?
    – Snow
    Mar 20, 2020 at 13:28

1 Answer 1


Based on the dates in your example.

13% of 102 is 13.26 or 1.105 per month. So if you had been invested for the whole two months that would be 2.21 in interest

Turning the monthly rate into a daily rate and then looking at the 48 days between January 29th and March 18th means that you would be due 1.78.

  • Aha so they don't pay me for the whole term period. They only pay me the interest from when I start the investment. Thanks!
    – Snow
    Mar 20, 2020 at 13:39

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