Alternative Small Dollar Loan Calculator

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.

More Related Resources

Webinar: Creating Safe, Profitable Small Dollar Loans

Individuals need access to safe small dollar loans to assist them during periods of financial...

Read more

Local Strategies to Stop Predatory Lending

Predatory lending practices strip wealth from financially vulnerable families and communities. This...

Read more

Alternative Small Dollar Loan Toolkit

The Alternative Small Dollar Loan Toolkit (ASDL) serves as a resource for banks and credit unions...

Read more