How does PeerPower calculate interest and fees ?

Interest and fees on PeerPower platform are calculated based on the actual number of borrowing days. The investor fee is 1.25% per year of the remaining principal balance.

Calculation of interest:

Interest = outstanding balance x (interest rate per year / 365) x number of days since the lastest payment date to the present payment date.

In the event that the issuer delays their repayment, investors will receive late interest calculated with the number of days since the repayment was delayed and repayment amount of that installment.

Calculation of late interest payment:

Late interest = payment amount for that installment x (interest rate per year / 365) x number of delayed payment day 

For example:

- Investment amount (THB): 100,000 THB

- Interest rate (per year): 10%

- Period: 120 days (with repayment due every 30 days)

- Repayment type:  amortization repayment, 25,000 THB per installment

If the issuer postpone to repayment their first installment, from January 30, 2023 to February 4, 2023

- Interest: 100,000 x (10% / 365) x 30 = 821.92 THB

- Late interest (5 days) : 25,000 x (10% / 365) x 5 = 34.25 THB

- The return amount that investors will receive (before deducting investor fee) is 856.17 THB

Calculation of troubled debt restructured interest:
Interest = outstanding balance × (interest rate per year + 1.5%) / 365 × number of days since the latest payment date to the present payment date.

Calculation of investor fee:

Investor fee = outstanding balance x (investor fee / 365) x number of days since the latest payment date to the present.

For example:

- Outstanding Balance: 150,000 THB

- Investor fee per year: 1.25%

- The latest payment date January 13, 2023 - the next payment date February 13, 2023 : 31 days

Investor fee: 150,000 x (1.25% / 365) x 31 = 159.34 THB

Remark: The system calculates with 2 decimal places (in case of calculation using Excel: round, 2).