How to Calculate Your Yield from Funding Projects on ALAMI’s P2P Funding Platform

When you decide to put your money in investments or funding projects, the yield is something that you must consider. Each investment instrument offers various rates of earning. On ALAMI’s P2P funding platform, the yield is known as ujrah or fees. In this article, we will discuss how to calculate your return from the projects that you fund. 

Before we discuss this issue, let us explain the basic concept, beginning with the definition of yield.

What is Yield? 

As explained by Investopedia, yield is the earnings generated and realized on an investment over a particular period of time.  In general, it can be expressed as a percentage based on the invested amount. It can also be in the form of price increases as well as any dividends paid, calculated as the net realized return divided by the principal amount. 

It is different from return because return includes both profits and losses over some period of time, expressed as the change in value of certain investment assets over a time period. 

ALAMI’s Yield Compared with other Investments 

Mutual Funds

A mutual fund’s yield is the income received by the investors through the interests and dividends generated by the funds’ investment. The rate varies and can reach up to 7% per year. 

Time Deposits

The yield from time deposits is around 4.25 to 6 percent annually based on the placement of each time deposit and the policies of the banks where we save our money. 


The yield from stocks can reach 20 percent or above. However, due to the risky nature of the stock market, the return can plummet drastically to minus. 

ALAMI’s Yield

The yield from funding through ALAMI’s P2P platform is influenced by a number of factors, as explained by Egtheasavianca Bitrava, ALAMI’s P2P Product VP in a funders’ guide webinar. These factors include: 

These factors will then be taken into account by the ALAMI’s risk team to assess the rate of each funding project available on the platform. When you log into your ALAMI account, you will see that each funding project is rated from 1 to 5 stars. The higher the rate, the bigger the risk and the potential yield, ranging from 14 to 16 percent p.a. 

Where does the earning come from?

One of ALAMI’s products is the P2P funding platform that is based on the values of the sharia, regulated by the fatwa of the National Sharia Board – Indonesian Ulama Council (DSN – MUI) number 117 Year 2018. The fees that the funders receive when they put their money to fund the projects is taken from the fees received as an agent. 

When you fund through the ALAMI P2P funding app, the SMEs who receive the funds (beneficiaries) are required to prepare certain debt recovery documents to the funders. The funders will then appoint ALAMI as an agent acting on their behalf. From this contract, the funders can receive ujrah or yield. 

Case example

To help you better understand the calculation of the yield, we will give an example to illustrate it. For instance, you put IDR 10 million to fund a project on ALAMI’s P2P platform on July 1st, 2022 with the fee of 14 percent. In the funding campaign, it is stated that the repayment due date is on August 31, 2022. The financial contract begins when the fund is disbursed to the beneficiary. In this case, the tenor is 60 days. 

The formula is as follows:

Total amount of fund x tenor/360 x 14%

With the above case, what you earned will be will be

10,000,000 x 60/360 x 14% = IDR 233,333

Why is the total number of days in a year stated as 360 instead of 365? This varies from one P2P funding company to another. However, the average number of  days in a month is 30. Multiply that by 12 months and you get 360. 

After finding out how to calculate your yield, why don’t you try funding yourself? Download the ALAMI P2P app and begin funding Indonesian Small and Medium Enterprises. By doing so, you are not only able to grow your wealth but also create positive impacts by funding halal enterprises. Click the buttons below to download the ALAMI P2P app! 

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