Deposit & Loan Acquisition Cost / ROI Calculator

Compute and compare the cost of acquiring a deposit or loan.

The average new account cost a bank or credit union between $350 -$422.1,2,3 What does it cost you?

This calculator compares the cost to acquire a single new deposit or loan and the resulting return on investment across various marketing channels for a single account. The analysis does not include any prepayment or overhead and assumes that all deposits are used to fund loans at the rates specified.

Default assumptions entered into the shaded fields are based upon research as indicated in the footnotes below. You may modify with your own assumptions and the analysis and charts will automatically recalculate. You may also switch the chart between comparing Acquisition Cost to comparing ROI by selecting the radio button at the top.

Questions or suggestions?

Deposit & Loan Acquisition Costs Compared

Deposit & Loan ROI Compared

Deposits-loans
$100 Conversion Guarantee
Advertising Costs & Conversion Rates
You may change the value of any shaded box. Acquisition Costs and ROI will change based upon values entered.
Datatrac
Cost per 1000 Impressions (CPM)
$ 4
$ 6
$ 6
$
$
NA
NA
Response Rate (Click Through Rate)
4
% 6
% 6
% 7
% 9
NA
NA
Cost per Unique Visitor (Cost per Click)
$ 4
$ 6
$ 6
$ 8
$
NA
NA
Vistor to Lead Conversion Rate
% 5
% 5
% 5
% 5
% 10
NA
NA
Cost per Lead
$
$
$
$
$
$
$ 14
Closed Deposit/Loan Conversion Rate
% 11
% 11
% 11
% 12
% 12
% 13
% 15
Cost per Closed Deposit/Loan
$
$
$
$
$
$
$
Once you sign up with Datatrac Name Your Price Leads™, Datatrac will continue to send you leads at no additional cost until you have a closed rate of at least $100 per new account. Click here for details.
Deposit/Loan Assumptions and Earnings

You may change the value of any shaded box. Earnings and ROI will change based upon values entered.
Cost of Funds
%
Loan Loss Provision
%
Average Loan Rate
%
Average Loan Amount
$
Datatrac
Annual Interest Income from Loan
$
$
$
$
$
$
$
Annual Interest Expense to Fund Loan
$
$
$
$
$
$
$
Loan Loss Provision
$
$
$
$
$
$
$
Net Earnings
$
$
$
$
$
$
$
Cost to Acquire New Account
(From Cost per Closed Deposit/Loan above)
$
$
$
$
$
$
$
Activity Needed to Close One New Account

Calculated based upon conversion rates entered above. Identifies the number of impressions, clicks and leads to achieve one closed deposit or loan.
Datatrac
Exposures
Responses/Clicks
Leads
Closed Deposits/Loans
Return on Investment (ROI)

ROI is computed based upon simple interest and does not include prepayment or general overhead.
Datatrac
First Year ROI
%
%
%
%
%
%
%
Three Year ROI
%
%
%
%
%
%
%
Footnotes
  1. Andera and Core Logic, How much do you spend on Customer Acquisition? (2012)
  2. Callahan & Associates, Which states spend the least to attract new members? (2012)
  3. The Financial Brand, The Credit Union Cost Per New Member Performance Index (2012)
  4. MonitizePros, What are average CPM Rates in 2016? (2016)
  5. Wordstream, Everything you know about Conversion Rate Optimization is Wrong (2014)
  6. Salesforce, Salesforce Advertising Index Q1 2015 (2015)
  7. Google AdWords, Keyword Planner (CTR - Based on auto loans with a $5 max bid) (2016)
  8. Google AdWords, Keyword Planner (Avg CPC - Based on auto loans with a $5 max bid) (2016)
  9. Direct Marketing Association, DMA Response Rate Report 2015 (2015)
  10. 100% is used since a visitor and a lead are the same in the case of direct mail.
  11. Estimated at a lower conversion rate because the visitor was reacting to a unsolicited advertisement.
  12. Estimated at a higher conversion rate because the visitor actively searched, called or visited a branch related to the advertisement.
  13. 100% is used because indirect loans are typically closed by the dealer and a financial institution only pays for closed referrals.
  14. Based upon the minimum bid for Datatrac Name Your Price Leads™.
  15. Datatrac clients that respond promptly to leads have reported conversion rates between 20% to 80%.
Datatrac $100 Conversion Guarantee

Datatrac guarantees that you will not pay more than $100 per closed deposit or loan based upon the minimum bid of $20 per lead. Datatrac will send you additional leads at no additional cost (Complimentary Leads) until you have a closed rate of at least $100 per new account. To qualify for Complimentary Leads, Datatrac will provide you with a list of leads that have been submitted to you for which you must identify the leads that have resulted in a closed deposit or loan. Leads you have purchased are eligible for credit toward the guarantee if they were contacted by you within two business days of when the lead was submitted to you and have not resulted in a closed deposit or loan within ninety (90) days of the date submitted. Datatrac may verify closed accounts with consumers that submitted the lead. Leads less than ninety (90) days old or greater than one (1) year old are not eligible for credit. Bid amounts in excess of $20 are not included in the Datatrac $100 Conversion Guarantee calculation.

Lead Sheet Exclusivity for Name Your Price Leads

Consumers that complete an inquiry for your institution will be sent to you exclusively provided that you have an active bid status, which means that you have not exceeded the number of leads per month that you specified or have agreed to purchase additional leads at the price you specify. Leads for institutions that do not have an active bid status are non-exclusive and may be sent to other financial institutions. You will only be displayed in and receive leads from markets and products for which you selected and which outperform the market average.

About Datatrac

Do you outperform your competition?  Datatrac will drive new business to you.  Our competitive intelligence proves to depositors and borrowers that you offer competitively superior products resulting in deposit and loan growth at a lower cost.  Datatrac is an independent, unbiased research firm that has monitored current and historical deposit and loan rates on more than 100,000 banking locations in America for over 25 years.  Datatrac Great Rate Awards® certify deposit and loan rates that outperform the market average.  Ask for your free Award Analysis.  www.datatracresearch.com.