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Scorecard Cut Off Calculator

Work out scorecard cut off instantly with clear inputs, formula shown and shareable results.

About Scorecard Cut Off Calculator

A scorecard cut-off trades volume against risk. Every point of extra approval brings additional good accounts and additional bad ones, and the cut-off should sit where the marginal good business still covers the marginal loss.

Formula

Cut-off trade-off

Bads accepted = approved × bad rate above cut-off; bads avoided = rejected × bad rate below

Worked example

With the default values below, Scorecard Cut Off Calculator returns Bad Accounts Accepted of 132. Change any input above and every figure here is recalculated in your browser.

Inputs used

Applications Receivedaccepts 1–10,000,000
10,000
Share Approved At The Cut-Offaccepts 1–100 %
55 %
Bad Rate Above The Cut-Offaccepts 0–50 %
2.4 %
Bad Rate Below The Cut-Offaccepts 0–80 %
14 %

Results

Bad Accounts Accepted
132
Applications Approved
5,500
Bad Accounts Avoided
630
Good Applications Turned Away
3,870

Step by step

  1. 1Values used
  2. 2Cut-off trade-off
  3. 3Bad Accounts Accepted= 132
  4. 4Applications Approved= 5,500
  5. 5Bad Accounts Avoided= 630
  6. 6Good Applications Turned Away= 3,870

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to whole numbers, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

How is the optimal cut-off chosen?

Where marginal revenue from the next slice of approvals equals marginal expected loss plus origination cost.

Why do good applications get rejected?

Because scores are probabilistic. Any cut-off refuses some borrowers who would have paid perfectly.

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