How do I track my overall rate of return?

The rate of return on an investment is a cumulative, annualized measure of the gain from your investment relative to the initial cost of the investment. LendingClub calculates “Net Annualized Return,” but there are several methods for calculating a rate of return that you may want to consider.

Your Net Annualized Return (NAR) is available to view on the Account Summary page and is updated on a daily basis. The NAR calculation is based on interest and any late fees from borrower payments received each month, net of service charges, charge offs, and recoveries.

Like any calculation of a rate of return, NAR is not a forward-looking projection of future performance; it is a calculation of the rate you have received from the time you started investing until the time the NAR is calculated. Your NAR will become available in your account after you receive your first borrower payment. To learn more about NAR and how it can change over the life of an investment, please click here.