Alternative Small Dollar Loan Calculator

Read more in Alternative Small Dollar Loans

Resource Overview

The calculator provided here allows you to enter your own institution's data to calculate a profitability analysis for a mid-sized small dollar loan portfolio. Fill in the fields below and a profitability report will be generated for you. You will also have the opportunity to download a PDF version of your results so you can keep them for reference.

To learn more about creating a mid-sized small dollar loan portfolio that is both responsible and profitable, we've put together a sample loan to help guide your estimates.

LOAN INPUTS

Average Principal Loan Amount ?

Total Number of Loans ?

Losses Per Loan (Actual or Projected) ?

Term (months) ?

mos.

Interest Rate ?

Cost of Funds ?

Delinquency Incident Rate ?

Late Fee ?

Personnel Expenses Per Loan ?

Servicing Expenses Per Loan ?

Fixed Expenses Per Loan ?

Origination Fee ?

ALERT: To ensure that loans are safe and affordable, the FDIC recommends that small dollar loans be less than $2500.

ALERT: To encourage repayment and discourage a cycle of debt, small dollar loan terms should be greater than 90 days.

ALERT: The APR to consumer interest rate is over 36%.This could be considered a predatory loan. APR to consumer can be reduced through lower up-front fees, lower interest rate, and longer loan terms.