Alternative Small Dollar Loan Calculator

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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.

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