Net annualized return (NAR) measures the actual rate of return of all your investments since you started on Mintos. It includes anything that affects your returns, such as delays, defaults, and campaign rewards.

NAR is not a forward-looking projection of performance. NAR is only calculated for the amount of money that is invested. Funds that sit in an investor’s Mintos account but that are not invested are not included in NAR calculations.

To calculate NAR, we apply a methodology called XIRR (extended internal rate of return), which is further adjusted to exclude compounding effects and reports NAR as a nominal interest rate.

NAR is calculated by using the exact amount and dates of all cash flows associated with the loans in which investments are made – historically via assignment agreements and currently through Notes (investment in the loan principal, repayments of the principal, interest and penalty charges, cash flow from secondary market transactions, actual write-off amounts, service fees charged by Mintos, and withheld taxes) and the outstanding amount of the investment in principal and accrued interest income and service fees, if any. The calculation does not take into account provisions for impairment losses or expected future losses. Any losses resulting from an unsuccessful or only partially successful recovery of funds are reflected in the NAR calculation only after the recovery process is finalized and any irrecoverable funds are marked as bad debt.