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Returns performance

The table outlines Zopa's historical returns for retail investors

2011 2012 2013 2014 2015 2016 2017 2018
Amount lent by retail investors (£) 57.6m 87.0m 181.8m 243.7m 268.3m 400.3m 415.6m 334.5m
Actual annual return*
Weighted average return (taking loan size into account) of loans
originated that year, minus any fees and actual net losses (so far)
5.8% 5.5% 4.6% 4.5% 4.8% 4.7% 4.3% 5.9%
Expected return*
Weighted average return (taking loan size into account) of loans
originated that year, minus any fees and expected net losses at origination
5.2% 5.1% 4.5% 4.5% 4.8% 4.9% 4.6% 4.4%
Principal repaid
Percentage of principal repaid by borrowers (so far) on loans
originated that year (excluding defaulted loans)
100% 100% 100% 96% 86% 71% 44% 10%
Actual annual return*
Weighted average return (taking loan size into account) of loans originated
that year, minus any fees. Includes Safeguard fund compensation for
actual losses (so far)
5.8% 5.5% 4.6% 4.5% 4.8% 4.7% 4.3% 5.9%
Safeguard fund usage
Amount paid out by Safeguard fund to cover defaults for loans originated
that year, divided by the contributions made into the fund for those loans
N/A N/A 46% 80% 95% 92% 73% N/A
Borrower APR
Weighted average APR of loans originated that year
(taking loan size into account)
8.9% 8.5% 7.0% 7.4% 7.8% 9.9% 10.3% 9.4%

*Excludes rate promise bonus

Last updated 12 September 2018

Methodology for calculating investor returns

Investor return is defined as the weighted average investor interest rate of loans (borrower interest rate net of fees, weighted by each loan’s amount) minus the annualised actual loss rate on these loans.

Investor return is calculated for all retail-funded loans disbursed in each calendar year. The annualised actual loss rate is calculated as:

Formula

This methodology is used to calculate both the estimated and actual investor returns.

Show additional considerations

Additional considerations

  • In order to be included in the calculation Zopa must have requested the first repayment on a loan
  • All interest received by lenders is calculated net of fees. Pre-6th April 2015 Zopa charged a monthly lender fee. From 6th April 2015, this has been moved to the loan level as a loan servicing fee, which is deducted to calculate advertised rate. For simplicity these fees have been treated in the same way for this calculation
  • Zopa’s Rate Promise ran from Jan-2014 to Jan-2015 and offered upfront compensation to lenders where matching failed to achieve the headline rate. This has not been included in the actual investor returns
  • All other Zopa bonuses e.g. early adopter, cash back, tell a friend have been excluded from this calculation as they are not tied to actual loan performance

Important information

Before you go any further, remember past performance is not a reliable indicator of future results. And forecasts are not a reliable indicator of future performance.

Read more about risk information.

Zopa's public loan book showing historical performance is available for download.

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Email: contactus@zopa.com

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