I added new cool metric to my statistics page – Implied IR. This is my estimate for the annual return on the invested balance. Compared to ADI% and ADB%, this goes a little bit further. First, the time-space is better aligned. By comparing interest earned in current month to end-of-month balance of previous month it is much more stable and usable metric. If you assume that you are fully invested (and I am running at 99%+ ADI/ADB) this is basically the return you get monthly on your balance (again, assuming you get interest monthly, what is mostly the case). By annualizing the return using (1+ Int/EOM Balance)^12 – 1) you get return estimate that assumes re-investment of the earned interested.
My Mintos page currently says my annual return is 11.98%. With my calculation I run a little bit higher at 12.76% for May/19.
My calculation (link opens new tab with my statistics):
It is good to know that Mintos calculation is somehow close to my own estimates. I mean, I don’t really care about the 0.7% difference. The important thing is that the annual return with earned interest re-investment can run at 12%. For me that is a very good result, especially when compared to my stock portfolio – there I target 12.5% annually, but the volatility is much higher. One day +5%, another -6%. This makes Mintos investment so cool – stable, above average revenue stream.