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From Lionel Raymundi - Poincenot <lio...@poincenot.com>
Subject Re: IRR calculation
Date Wed, 23 Aug 2017 13:59:13 GMT
Hi Ed and Saransh, thank you for your responses.

I've implemented the functionality pretty much like your example, Saransh,
but considering the possibility that the repayments are done in variable
periods (mainly because of grace period, in our case). This ends up being a
daily-based IRR, opossed to the more traditional calculation way which is
repayment-period-based.  Anyway, from one result you can get the other
applying a period transformation.
I think it would be better not to recalculate this ratio for every
repayment. I think it should be a picture of the loan conditions at time of
disbursement.

Ed, I think both EAR and IRR are useful for both customers and backoffice.
I would try to add it in the Account Detail tab of Mifos, if that's what
you mean.

If you agree, I could create a JIRA ticket to track this discussion and
then adjust the implementation to what we decide there.

Thanks again

Lionel


2017-08-17 21:03 GMT-03:00 Saransh Sharma <saransh@theupscale.in>:

> Hi, Lionel,
> Couple of years ago i wrote something in JS for Mifos X Based Front End Or
> Community App which was written in ANGULAR JS
>
> https://github.com/theupscale/financeFunctions/blob/master/irr.js
>
> It is basic and simple one which pass parameters like loan amount, tenor,
> advance EMI,  and Flatrate and then outputs the IRR
>
> Yeah you can implement this in the backend and store it inside the DB also
> and you can generate it in the FRONT END and can also pass it as a
> parameter, then in the first case you need to simply implement the data
> type in the first file
>
> https://github.com/openMF/incubator-fineract/blob/
> master/fineract-provider/src/main/java/org/apache/fineract/
> portfolio/loanaccount/data/LoanAccountData.java
>
> Second, you can define your IRR method inside this file
>
> https://github.com/openMF/incubator-fineract/blob/
> master/fineract-provider/src/main/java/org/apache/fineract/
> portfolio/loanaccount/domain/Loan.java
>
>
> And as i see IRR is highly dependent on the payments of the EMI or you can
> say cash inflow, of the particular account or loan amount you can add
> something in your method that once the payment is cleared you can
> recalculate the IRR and set it again.
>
> Pretty much this is, it if you want broader functionality
>
> If you are opting IRR on Front End and just store the value of IRR
> Generated on the Loan Amount and Payment Done,
>
> Let me know i can help clarifying the whole solution for you thanks
>
>
>
>
>
> On Fri, Aug 18, 2017 at 4:55 AM Ed Cable <edcable@mifos.org> wrote:
>
> > Hi Lionel,
> >
> > Thanks for volunteering to contribute this. From my end I would it find
> it
> > very valuable to display this IRR as well.
> >
> > As opposed to your previous request, this would moreso be for the staff
> to
> > see, correct?
> >
> > Where would you propose displaying this in the UI?
> >
> > I realize you're still awaiting feedback on your effective annual
> interest
> > rate thread as well. I think once that is calculated it would be
> incredibly
> > valuable to display on the loan account summary in the web app and then
> in
> > both of the Android and web self-service apps.
> >
> > I have requested Nazeer's feedback on this thread and will request it on
> > that other one as well.
> >
> > Thanks,
> >
> > Ed
> >
> > On Fri, Aug 11, 2017 at 2:31 PM, Lionel Raymundi - Poincenot <
> > lionel@poincenot.com> wrote:
> >
> > > Hi guys,
> > >
> > > I need to calculate the Internal rate of return of the loan, with the
> > mind
> > > set to transparency. I wrote another email to the list months ago,
> > > regarding another important rate (subject: "Effective Annual Interest
> > > Rate").
> > >
> > > I want to do this on Fineract if you are interested on, but I'm not
> sure
> > > about how to implement it. I was thinking on calculating it online
> > > everytime any of this services are called:
> > > .- POST to calculate loan repayment schedule (simulation)
> > > .- GET to retrieve a loan
> > >
> > > Another option would be to store it on the database, avoiding the
> > > calculations cost on every get. But I don't know all the flows where a
> > loan
> > > can be updated...
> > >
> > > Please, let me know if you are interested on this being pushed to the
> > repo
> > > and which would be the best way to implement it..
> > >
> > > Regards,
> > >
> > > Lionel
> > >
> >
> >
> >
> > --
> > *Ed Cable*
> > President/CEO, Mifos Initiative
> > edcable@mifos.org | Skype: edcable | Mobile: +1.484.477.8649
> > <(484)%20477-8649>
> > <(484)%20477-8649>
> >
> > *Collectively Creating a World of 3 Billion Maries | *http://mifos.org
> > <http://facebook.com/mifos>  <http://www.twitter.com/mifos>
> >
>

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