Work out loan origination cost instantly with clear inputs, formula shown and shareable results.
Origination cost per loan is the fixed cost of underwriting, spread over the loans written. Amortising it over the average tenor gives the minimum spread the loan must earn before it covers the cost of being written at all.
Origination economics
Cost per loan = annual cost / loans; break-even spread = cost share / tenor
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Because origination cost is largely per-file, not per-unit. Small loans carry a punishing cost ratio.
Automated underwriting and digital onboarding cut the per-file cost, which is why small-ticket lending has moved online.