# Your monthly revenue results are in!

Estimated monthly revenue increase for your SMB portfolio at the end of year 1

Note: Only factor in account holders who rely on your digital banking channels

Note: Only factor in account holders who rely on your digital banking channels

Step 1

### Calculating the transactional revenue share value of an SMB that actively gets paid through Autobooks.

10 10 Average number of monthly transactions
\$650 \$350 Average transaction amount
2.89% 2.89% Transaction processing rate
70% 70% Estimated transaction processing cost
15% 15% FI revenue share percentage
\$8.45 \$4.55 Monthly Transactional Revenue

How did we get this answer? See the detailed analysis

The formula to calculate monthly transaction processing revenue per active SMB is built upon these four calculations (steps 1-4 below):

1. Total monthly processing volume per active SMB
2. Gross transaction processing revenue to share
3. Net transaction revenue to share
4. Monthly transaction revenue per active SMB

1. Total monthly processing volume
First, let’s determine the total dollar amount processed per month by an active SMB. Below are the system-wide averages, per SMB, for both number of transactions processed per month, and average dollar value per transaction.

2. Gross monthly transaction processing revenue to share
Next, we multiply the monthly processing volume times the processing/interchange rate. This determines the gross amount of transaction processing revenue to be shared. For the purposes of this guide, we’ll calculate all transactions as card transactions with a rate of 2.89%.

3. Net monthly transaction processing revenue to share
Next, you will take the gross transaction processing revenue and subtract the estimated transaction processing costs. Transaction processing costs are based upon system-wide estimates of 70%.

4. Net monthly transaction processing revenue for the FI
Finally, we multiply the net transaction revenue times the FI revenue share percentage.

Step 2

### Estimating how many active SMBs your FI may have at the end of year 1.

Total number of online accounts entered at the beginning
100% 15% Accounts that are eligible for Autobooks
5% 5% Estimated Autobooks adoption at the end of 12 months
55% 55% Payment activation rate
Active Number of SMBs at the FI

How did we get this answer? See the detailed analysis

The formula to calculate monthly transaction processing revenue per active SMB is built upon these four calculations (steps 1-4 below):

1. Total monthly processing volume per active SMB
2. Gross transaction processing revenue to share
3. Net transaction revenue to share
4. Monthly transaction revenue per active SMB

1. Total monthly processing volume
First, let’s determine the total dollar amount processed per month by an active SMB. Below are the system-wide averages, per SMB, for both number of transactions processed per month, and average dollar value per transaction.

2. Gross monthly transaction processing revenue to share
Next, we multiply the monthly processing volume times the processing/interchange rate. This determines the gross amount of transaction processing revenue to be shared. For the purposes of this guide, we’ll calculate all transactions as card transactions with a rate of 2.89%.

3. Net monthly transaction processing revenue to share
Next, you will take the gross transaction processing revenue and subtract the estimated transaction processing costs. Transaction processing costs are based upon system-wide estimates of 70%.

4. Net monthly transaction processing revenue for the FI
Finally, we multiply the net transaction revenue times the FI revenue share percentage.

Step 3

### Calculating the subscription revenue share of an SMB that upgrades to our accounting and reporting package.

Active number of SMBs at the FI
15% 15% Subscription rate
\$3.33 \$3.33 FI revenue share
Monthly Subscription Revenue
Total Monthly Subscription Revenue

How did we get this answer? See the detailed analysis

The formula to calculate monthly transaction processing revenue per active SMB is built upon these four calculations (steps 1-4 below):

1. Total monthly processing volume per active SMB
2. Gross transaction processing revenue to share
3. Net transaction revenue to share
4. Monthly transaction revenue per active SMB

1. Total monthly processing volume
First, let’s determine the total dollar amount processed per month by an active SMB. Below are the system-wide averages, per SMB, for both number of transactions processed per month, and average dollar value per transaction.

2. Gross monthly transaction processing revenue to share
Next, we multiply the monthly processing volume times the processing/interchange rate. This determines the gross amount of transaction processing revenue to be shared. For the purposes of this guide, we’ll calculate all transactions as card transactions with a rate of 2.89%.

3. Net monthly transaction processing revenue to share
Next, you will take the gross transaction processing revenue and subtract the estimated transaction processing costs. Transaction processing costs are based upon system-wide estimates of 70%.

4. Net monthly transaction processing revenue for the FI
Finally, we multiply the net transaction revenue times the FI revenue share percentage.

\$8.45

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

### Retail Accounts

\$4.55

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

### Subscription Revenue

0

+
0

Retail Accounts

=

Total Monthly Subscription Revenue

By establishing the estimates in the previous steps, we can now calculate the monthly revenue at the end of year 1.

\$8.45

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

### Retail Accounts

\$4.55

Monthly Transactinal Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revnue

Add totals to the monthly subscription revenue +
-- -- FI Monthly Transactional Revnue Retail Total Monthly Subscription Revenue

=

Total Monthly Revenue of Active SMBs - End of Year 1 