Am I making the right move?

How can your XIRR be greater than 12% for SS? I thought the highest rate you could get there was 12%, so even if you lent all your funds the instant that they were deposited (which I believe would be pretty much impossible, certainly right now there's nothing at all to invest in for example) you wouldn't see more than 12%? 

Or perhaps being allocated a loan part on one day, receiving interest but only depositing the cash the next day?

Which is maybe why XIRR can be a misleading measure for P2P sites where investors manually choose loans, and especially those, like SS, where investment opportunities are scarce and appear essentially randomly. XIRR assumes the platform operates in a vacuum; when we deposit funds they magically appear and when we withdraw, the funds vanish and count for nothing. In reality, in order to invest in those rare opportunities we must have ready cash stored somewhere even if it isn't in the platform's holding account.

As an example, if a loan repays but there's nothing to invest in immediately, I might leave the balance in the platform holding account to await a new opportunity. However, my XIRR would be higher if I withdrew the balance into my bank current account, then transferred it back when a new loan became available, even though my actual earnings would be no different. 

As an extreme example consider AC. From an XIRR point of view, there may be situations where it is better (i.e. has a higher XIRR) to withdraw idle funds from AC into a 0% current account than to allow them to be swept into the QAA to earn 3.75%, because "in-platform" the 3.75% pulls down the blended QAA/MLIA rate, but "out-of-platform", the 0% doesn't count. [Disclaimer, I haven't worked an example and it would depend on amounts, dates, QAA rate and MLIA rate].
 

/mod hat off

I concur with the last three posters. IRR (or XIRR) usually gives a 'too high' answer. On FC, where they calculate 'returns' only on invested money (even though the total may all be in the platform) the answer, in my case, was about 2x what you get if you take idle (even the idle ON platform) funds into account.

Here's a very simple example with workings:



A few things to remember:
 - ensure you add your outstanding balance to the "Out" column if you haven't withdrawn funds yet
 - take the reciprocal of the "Years of Investment" as the power (in the IRR calc)
 - subtract "1" to get the IRR

For comparison, the XIRR of this series is 6.9% - so the method above isn't as "precise" but can be a better quick-check when comparing much more complex investment series, particularly when combined with the Cash Multiple statistic (1.095x i.e. 9.5% return) which is itself helpful.
 

The fat end of two years, if only all replies were so well considered.