Lending economics calculator
Enter your own assumptions to see the result per loan, the volume needed to cover fixed costs and how sensitive it is to credit losses. All formulas are shown below.
Sensitivity: interest rate and credit losses
Saved scenarios
Nothing you enter is saved or sent. The button above copies your assumptions into the contact form, where you decide whether to send them.
How it is calculated
- Instalment = amount × i ÷ (1 − (1 + i)^−n), with i = rate ÷ 12 and n = term (equal monthly instalments)
- Revenue per loan = total interest + upfront fee
- Funding cost = funding rate ÷ 12 × sum of month-start balances
- Credit loss = loss rate × amount
- Contribution per loan = revenue − funding − credit loss − acquisition − operating cost
- Break-even loans a month = fixed cost ÷ contribution per loan (rounded up)
- Months to break-even: each loan earns its contribution evenly over its term and pays acquisition cost when made; the first month in which the cumulative result reaches zero (up to 120 months)
- Cap checks: annual nominal caps use the interest rate; effective-rate caps use the rate including the upfront fee (monthly IRR × 12); monthly caps use rate ÷ 12; daily caps use (interest + fees) ÷ amount ÷ (term × 30.4 days)
General information only, not legal, financial or investment advice. Simplified model: no taxes, prepayments, collections recoveries or regulatory capital. Check the current official text of any rate cap and take professional advice before acting.