# Calculate Months Until Loan Break-Even (Lender Perspective)

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.

• You should also include a reasonable opportunity cost. What would this money be doing otherwise and how much would it gain? – jmg229 Mar 15 '15 at 14:10
• Is this an existing note you are considering purchasing, or a new note? Breakeven is when the payments you received are a full return of your capital. And to @jmg229 's point, that ignores interest or opportunity cost. – JTP - Apologise to Monica Mar 15 '15 at 15:03
• @JoeTaxpayer I'm referring specifically to a note that I have already invested in and is already in the repayment period. Yes, I'm looking for that 'full return of capital' date. It should be some time near the end of the repayment period, but before the entire loan is paid off. After that date, the rest of the payments I receive are truly profits. – Clete2 Mar 15 '15 at 15:05
• What is the monthly payment? You don't state that. – JTP - Apologise to Monica Mar 15 '15 at 15:11
• @JoeTaxpayer I added it, plus I changed the example to be a real example of a note I am invested in. – Clete2 Mar 15 '15 at 15:20