I'm invested in LendingClub and I want to take a loan and be able to calculate the date that I would break even. I want to know the date when my investment (note amount) equals the total payments received (principal + interest + overdue fees - LendingClub fees).
Loan details (this is a real example):
- Note amount: $25 (this is my investment, not the total balance of the loan)
- Interest rate: 10.15% (compounds daily I believe)
- Payments received: $4.85 (Principal: $3.66, Interest: $1.19)
- LendingClub Fees paid: $0.05 (1% of Payments Received, rounded up to the nearest penny)
- Loan term: 3 years
- Interest Accrued: $0.04
- Next Payment: $0.80
- Payment Due Date: 4/8/2015
- Final Payment date: 9/8/2017
It would be easy to calculate the potential loss at its current state:
- Potential Loss = Investment - Payments Received + LendingClub Fees
- Potential loss = $25 - $4.85 + $0.05
- Potential loss = $20.20
But I have no idea how to calculate the date that I would expect to break even.
The assumption is that the borrower will not make any additional payments.
Here is a screenshot of the loan history up until today: http://i.imgur.com/w5ju9wq.png
This is just one example of many, that I picked at random.