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What is realised annual return (RAR)?
What is realised annual return (RAR)?
Mitch avatar
Written by Mitch
Updated over a week ago

Realised Annual Return (RAR) is a measure of the actual rate of return on funds invested on the Harmoney Platform. As RAR is based on historic performance that may not be a good indicator of future returns.

In simple terms, RAR takes the income from lending (interest) and deducts the costs you have incurred (credit losses and Lender/Service fees) to provide the net return. The net return is then recalculated as an annual rate and divided by the daily principal outstanding to provide your Realised Annual Return. The RAR calculation does not currently include the complete impact of Payment Protect on your portfolio return. The formula will be updated soon to factor in all Payment Protect variables.

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