Applications
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FREE TOOL · ILLUSTRATIVE
Credit Box Simulator: Approval Rate & Loss Rate Calculator
Model how tightening or loosening your underwriting policy moves approval rate, loss rate, funded volume, revenue, and risk-adjusted margin, all at once.
Underwriting policy simulator
Built for lenders and aspiring lenders who want to see the full shape of the tradeoff, not just approval rate.
This uses an illustrative model, not real portfolio data. It's built to make the shape of the tradeoff visible, not to price a real book.
Policy inputs
Volume & conversion
Approval rate
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Approved applications
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$ Funded / month
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Risk & annualized returns
NCL / loss rate
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Annualized losses
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Applicants declined / month
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Illustrative model: approval rate and loss rate are modeled as linear functions of the threshold, calibrated to a plausible mid-market unsecured lending curve. Real credit boxes are segment-specific and nonlinear. RAM (risk-adjusted margin) here is annualized revenue minus annualized losses. Use this to build intuition about the shape of the tradeoff, not to set an actual policy.