Our Projected Return calculation does take expected net losses into account, as well as the service fee charged by LendingClub.
Projected Returns are LendingClub’s modeled return for a subset of Notes, often a Note Grade (A through E*) or Subgrade (A1-E5). We calculate our projected return using the interest rates, expected losses, recovery rates, and service fees associated with the mix of Note grades and terms selected. Our projection is based on the past performance of loans with similar characteristics along with certain additional assumptions that could impact future performance.
Projected Returns are not intended as a promise of future results and are not representative of the projected performance of any single Note. Individual portfolio results may be impacted by, among other things, the diversity of the portfolio, the exposure to any single Note or group of Notes, as well as macroeconomic conditions. Notes are offered by Prospectus filed with the SEC and you should review the risks and uncertainties described in the Prospectus prior to investing.
*As of November 7, 2017, F and G grade Notes are no longer available on the LendingClub investor platform.