Understanding your revenue opportunity

To calculate your ROI with Autobooks for your first year, simply fill-out the fields in this page and the next.

Your estimated ROI results are in!

Total Monthly Revenue of Active SMBs - End of Year 1

Download my results Autobooks Guide to ROI

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

Here’s how to find your monthly transactional revenue per small business (SMB)...

Business Retail
10 10 Average number of monthly transactions These numbers are derived from historical company data.
$650 $350 Average transaction amount These numbers are derived from historical company data.
3.49% 3.49% Transaction processing rate This is the current rate for processing card-based transactions. For our purposes here, we’ll calculate all transactions as card transactions.
75% 75% Estimated transaction processing cost Transaction processing costs are based upon system wide estimates of 75%.
15% 15% FI revenue share percentage This is the percentage of revenue shared with your FI.
$8.50 $4.58 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 3.49%.

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 75%.

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

Step 2

Next, here's how to find the active number of SMBs at an FI, end of year 1...

Business Retail
Total number of online accounts entered at the beginning These numbers are based on the information you entered at the very beginning.
100% 15% Accounts that are eligible for Autobooks The 15% is based on industry-wide estimates of retail customers exhibiting micro-business behavior.
5% 5% Estimated Autobooks adoption at the end of 12 months We assume a 5% adoption rate at the end of year 1.
55% 55% Payment activation rate These percentages are derived from historical company data.
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 3.49%.

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 75%.

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

Step 3

Lastly, let’s add in the monthly subscription revenue...

Business Retail
Active number of SMBs at the FI These numbers are carried over from the previous section.
15% 15% Subscription rate These percentages are estimates derived from historical company data.
$3.33 $3.33 FI revenue share Your FI will receive 33% of the $9.99 subscription fee (about $3.33).
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 3.49%.

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 75%.

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

Your Estimated ROI Results

Business Accounts

$8.50

Monthly Transactional Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revenue

Retail Accounts

$4.58

Monthly Transactional Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revenue

Subscription Revenue

0

Business Accounts

+
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.

Business Accounts

$8.50

Monthly Transactional Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revenue

Retail Accounts

$4.58

Monthly Transactional Revenue

X
--

Active Number of SMBs at the FI

=
--

FI Monthly Transactional Revenue

Add totals to the monthly subscription revenue

+
--

FI Monthly Transactional Revenue Business

--

FI Monthly Transactional Revenue Retail

Total Monthly Subscription Revenue

=

Total Monthly Revenue of Active SMBs - End of Year 1

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