Embedded Lending API Cost Planner

Map unit economics before scaling an embedded lending program. Enter the per-decision fee, expected monthly application volume, and approval rate. Layer on optional per-funded fees, revenue share, loss reserves, and take-rate assumptions to reveal total monthly cost, cost per funded loan, contribution margin, and breakeven throughput.

Per-decision fee charged by the embedded lending or credit decisioning API.
Total credit decision calls you expect to send the provider each month.
Share of decisioned applications that convert into funded loans.
Defaults to $0 when blank; enter pass-through platform charges per funded loan.
Defaults to 0%. Multiply the average funded loan size by this percentage for the provider's revenue share.
Defaults to $1,400 if left blank to mimic small business working capital tickets.
Defaults to 8% to approximate platform revenue (origination plus partner fees) per loan.
Defaults to 5% to cover expected loss holdbacks, guarantees, or first-loss positions.

Assumes monthly steady-state volumes. Adjust revenue share, reserves, and take rate when pricing tiers or loss experience evolves.

Examples

  • $1.80 per decision, 12,500 apps, 28% approvals, $35 funded fee, 3% revenue share, $1,400 average loan, 8% take rate, 5% reserve ⇒ With 12,500 applications and 28.00% approvals you fund 3,500 loans per month. Decisioning, platform, revenue share, and reserve costs total $537,000.00, or $153.43 per funded loan. Your take rate yields $112.00 per loan, producing -$41.43 contribution each. You break even after 4,795 funded loans at this pricing tier.
  • $2.40 per decision, 8,000 apps, 35% approvals, no per-funded fee, revenue share blank, $1,800 average loan, 12% take rate, 4% reserve ⇒ With 8,000 applications and 35.00% approvals you fund 2,800 loans per month. Decisioning, platform, revenue share, and reserve costs total $220,800.00, or $78.86 per funded loan. Your take rate yields $216.00 per loan, producing $137.14 contribution each. You break even after 1,023 funded loans with this revenue mix.

FAQ

How should I enter sandbox versus production pricing?

Use sandbox rates for early pilots and production rates once you scale. Saving multiple scenarios highlights when pricing tiers change unit economics.

Can I include charge-off guarantees or loss corridors?

Yes. Add them to the reserve percentage so required holdbacks or guarantees are factored into the per-loan cost.

What if my take rate includes interchange or ancillary revenue?

Sum all platform revenue sources into the take-rate percentage so you capture full contribution margin per loan, including interchange or subscription upsells.

Additional Information

  • Approval rate multiplies monthly applications to calculate funded loans, which drives every downstream cost and revenue assumption.
  • Revenue share and reserve percentages are applied to the average funded loan amount to capture variable costs that scale with loan volume and credit performance.
  • Breakeven funded loan count divides total monthly cost by revenue per loan; if take rate is zero the breakeven cannot be achieved and contribution stays negative.

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