It took a little tinkering, but I finally hit upon the perfect way to integrate Prosper (or LendingClub or …) with Quicken (or Money or …) given the current lack of integration between the services (see here if interested.)

Since implementing that solution I have had defaulted debt sold.

With enough experience behind me I thought that a comparison of the Quicken and Prosper accounting differences and the implication on ROI.

Quicken enters the money into the account the moment the money leaves my bank account and it only acknowledges interest after it has been paid.  Prosper only counts money in loans and acknowledges interest the moment it is accrued.  Both acknowledge default sale amounts the moment they happen.  Neither approach attempt to project a future loan’s value.

What does this mean?  Well it means that with Quicken you can get the ROI for the moment the money enters the account with interest only for actual payments received.  With Prosper you get the ROI for the loans with all accrued interest.  Since you can only deduct defaulted principal (cash basis) I feel that Quicken’s approach is correct.

That being said let’s compare ROI values for my account… Other than the gap the curves are remarkably similar. I am interested to see what the rumored December debt sale looks like.

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