How investor returns are calculated
The daily-interest formula, worked out month by month for a $500,000 placement.
AVCG uses a daily-interest formula for investor returns. Interest accrues each day on your outstanding balance and is paid out on the first of the following month. Simple, transparent, and consistent with how private mortgages work.
The formula
Principal × (Annual Rate ÷ 365) × Days in the Month = Monthly interest paid.
Worked example — $500,000 at 11%
For a $500,000 placement at the 11% tier, in a 31-day month:
- Principal
- $500,000
- Annual rate
- 11% (0.11)
- Daily rate (0.11 ÷ 365)
- 0.000301
- Days in month
- 31
Yearly total
At 11% on $500,000, total interest across a 365-day year is $55,000 — paid out in twelve monthly deposits that vary slightly with days-in-month.
Related guides
Keep reading
How first-lien security protects your capital
What 'first lien' means, why it matters, and what happens in a worst-case scenario.
What monthly interest payments look like — and what happens on payoff
How and when interest lands in your account, and what happens when a loan pays off.
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