Prosper logo

Prosper

Pioneer peer-to-peer personal loan investing

private credit
Founded 2005Regulation SEC Regulated
Min Investment
$25
Target Return
5–9%Annualized
Annual Fee
1%of AUM
Liquidity
3–5 years
Accredited
NoOpen to all

Pros & Cons

Pros

  • Low $25 minimum
  • Established platform
  • Automated investing

Cons

  • 3–5 year terms
  • Default risk
  • Lower yields than newer platforms
02

Target Projection

If the 5–9% target is achieved every year, net of fees

Target low · 5%

$14,802

Target mid · 7%

$17,908

Target high · 9%

$21,589

Reality checkThis projection assumes the target return range is achieved every single year, net of fees. Real-world returns vary significantly — Prosper's actual history includes years of negative returns. Target ranges describe what the platform aims to achieve, not guaranteed outcomes. Past performance does not guarantee future results.
03

The Cost of Fees

InvestmentHorizon
What a 1% annual fee actually costs over time.$10,000 · 10 yr · 7% gross return
$5K$10K$15K 0yr2yr4yr6yr8yr10yr
Value after fees
Fees paid (cumulative)
Value if fees were 0%

Gross ending value

$19,672

Net ending value

$17,908

Total fees paid

−$1,763

04

Head-to-Head

PlatformMinTarget ReturnAnnual FeeLiquidityAccredited
Prosper logoProsper◀$255–9%1% annual servicing3–5 yearsNo
LendingClub logoLendingClub—4–7%No fee on savingsDaily (savings)No
Automation Finance logoAutomation Finance—10–15%Management fee12–36 monthsYes
Fund That Flip logoFund That Flip—8–12%1–2% origination6–18 monthsYes
Edly logoEdly—8–12%Platform fee2–4 yearsYes
06

Also in Private Credit

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