Crowdfunding Return Calculator
Crowdfunding net return.
Calculate crowdfunding investment net returns after defaults and fees. Enter investment amount to see net crowdfunding returns after defaults and platform fees.
What this tool does
This calculator models the net internal rate of return (IRR) from a crowdfunding investment after accounting for losses and platform costs. It takes your investment amount, projected gross annual return, expected annual default rate, platform fee, and holding period, then estimates what you actually earn once defaults and fees are deducted from the gross yield. The net return is sensitive to both the default rate and annual fee—higher either one, and your take-home return falls noticeably. A typical use case: estimating actual returns from a peer-to-peer lending platform where stated yields are attractive, but platform fees and borrower defaults reduce the final outcome. The calculation assumes constant rates across the holding period and doesn't account for reinvestment timing, tax treatment, or early withdrawal penalties. Results are illustrative and based on the inputs you provide.
Quick answer: with the default values, the result is $12,166.53 (Net Future Value After 5 Years). Adjust the values below for your own figures.
Enter Values
People also use
Investing
Dollar Return Calculator
Calculate dollar return including capital gains and dividends. Enter initial investment value to see total dollar return from initial value and final value.
Investing
Leveraged Return Calculator
Calculate the return on a leveraged investment after borrowing cost. Enter equity, leverage ratio, asset return and borrow rate.
Investing
Asset Allocation Return Calculator
Calculate weighted average return of a portfolio across equity, bond, and cash allocations. Enter equity return to see weighted portfolio return.
Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Crowdfunding investment return calculator factors in projected returns, default rates, and platform fees. Property crowdfunding platforms typically advertise 7-10% gross returns. After 2-5% defaults and 1-2% platform fees: 4-7% net returns. Equity crowdfunding platforms carry much higher variance - mostly losses with occasional 10-100x winners.
Example: 10,000 invested in property crowdfunding at 8% gross, 3% defaults, 1% platform fee = 4% net return. Over 5 years: 12,167 future value. 2,167 net gain. Same 10,000 in S&P 500 at 7%: 14,026. Crowdfunding underperformed despite higher 'gross' yield because of default and fee drag.
Property crowdfunding risks: illiquidity (locked 1-5 years), platform failure (not covered by bank deposit-protection schemes), borrower defaults (especially during downturns), fees buried in small print. Equity crowdfunding (startup investing): 70-80% complete losses, 10-20% modest returns, 5-10% big wins. Spreading across 20+ deals is a common way to manage the risk. Both unsuitable for emergency funds - illiquid and risky despite marketing claims.
A worked example
With the defaults: investment amount of 10,000, projected gross return of 8%, annual default rate of 3%, annual platform fee of 1%. The tool returns 12,166.53.
What moves the number most
The result responds to Investment Amount, Projected Gross Return %, Annual Default Rate %, Annual Platform Fee %, and Investment Period.
The formula behind this
Net rate = gross rate - default rate - fee. Future value compounded at net rate.
£10,000 at 8% gross, 3% defaults, 1% fees over 5y = $12,166.53.
Inputs
| Total Return | $2,166.53 |
|---|---|
| Net Annualised Return | 4.00% |
| Gross Future Value | $14,693.28 |
| Drag from Defaults + Fees | $2,526.75 |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes the future value of a crowdfunding investment by applying compound growth at a net annual rate. The net rate is derived by subtracting the annual default rate and platform fees from the projected gross return, all expressed as percentages. The resulting net rate is then compounded over the specified investment period to project the final portfolio value. The model assumes a constant net growth rate throughout the holding period and treats defaults and fees as ongoing annual deductions from returns. It does not account for variable returns across years, the timing or sequence of defaults, tax implications, reinvestment mechanics, or changes to platform fees. Results represent a simplified projection based on the stated inputs and should not be treated as a forecast of actual outcomes.
References
Frequently Asked Questions
Realistic crowdfunding returns?
Liquidity considerations?
Platform risk?
Tax treatment?
Related Calculators
Dollar Return Calculator
Calculate dollar return including capital gains and dividends. Enter initial investment value to see total dollar return from initial value and final value.
Leveraged Return Calculator
Calculate the return on a leveraged investment after borrowing cost. Enter equity, leverage ratio, asset return and borrow rate.
Asset Allocation Return Calculator
Calculate weighted average return of a portfolio across equity, bond, and cash allocations. Enter equity return to see weighted portfolio return.
More Investing Calculators
Investing
100 Minus Age Asset Allocation Calculator
Calculate stock-vs-bond allocation using the 100-minus-age rule of thumb — see the suggested percentage split for any age you put in.
Investing
Active vs Passive Investing Calculator
Compare active versus passive investing over the long run. See how a percentage point of extra fees compounds into a wealth gap over decades.
Investing
Annuity Present Value Calculator
Calculate the present value of an ordinary annuity from regular payments, periodic rate, and the number of periods until the stream ends.
Investing
APR to APY Calculator
Convert APR to APY for any compounding frequency to see the true effective annual yield — what you actually earn (or pay) on a given quoted rate.
Investing
Asset Allocation Calculator
Calculate suggested portfolio asset allocation by age and risk tolerance (stocks/bonds/cash). Enter risk tolerance 1-10 to see suggested stock and bond.
Investing
Asset Allocation Drift Calculator
Calculate drift between current and target asset allocation to decide if rebalancing is needed. Enter equity to see drift percentage and rebalance flag.
Explore Other Financial Tools
Digital Nomad & Freelance
Billable Hours Calculator
Calculate annual billable hours and revenue from weekly hours, utilisation rate and weeks worked. See billable versus non-billable time and income.
Lifestyle
Fuel Tank Fill Cost Calculator
Calculate fuel tank fill cost with monthly, annual, and five-year projections — the real cost of refuelling at your current pattern.
Cloud & Tech
Cloud Cost Calculator
Calculate cloud compute storage and bandwidth costs with reserved discount. Enter compute monthly to see cloud net monthly cost across compute and storage.
Spotted something off?
Calculations or display — let us know.