Embedded Finance ROI Calculator
Revenue from embedded financial services in platforms.
Inputs
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Results
Total monthly revenue
$242,500.00
≈ 6 Teslas
Net monthly ROI
$227,500.00
≈ 5 Teslas
Annual net ROI$2,730,000.00
ARPU uplift ($/mo)$4.85
ARPU uplift (%)19.4%
Payment interchange revenue$30,000.00
Lending revenue$112,500.00
Retention value$100,000.00
Payback Months0.07
How to Use This Calculator
- Enter Monthly active users, Current ARPU ($/mo), and Payment adoption (%).
- Set Avg monthly spend ($), Interchange share (bps), and Lending adoption (%).
- Adjust Avg loan size ($), Lending margin (%) as needed.
- Review Total monthly revenue ($) and Net monthly ROI ($).
- Use Annual net ROI ($) and ARPU uplift ($/mo) ($) to inform your decision.
How the result changes with Monthly active users
| Monthly active users | Total monthly revenue | Net monthly ROI |
|---|---|---|
| 10,000,000 | $48,500,000.00 | $48,485,000.00 |
| 35,000,000 | $169,750,000.00 | $169,735,000.00 |
| 65,000,000 | $315,250,000.00 | $315,235,000.00 |
| 90,000,000 | $436,500,000.00 | $436,485,000.00 |
What each input means
- Monthly active users
- Number of monthly active users on your platform.
- Current ARPU ($/mo)
- Current average revenue per user per month (before embedded finance).
- Payment adoption (%)
- Percentage of users expected to adopt embedded payment features (cards, wallets).
- Avg monthly spend ($)
- Average monthly transaction volume per user through embedded payments.
- Interchange share (bps)
- Your share of interchange revenue in basis points (100 bps = 1%). Typical BaaS share: 50-150 bps.
- Lending adoption (%)
- Percentage of users expected to take an embedded loan or BNPL offer.
- Avg loan size ($)
- Average loan amount for embedded lending products.
- Lending margin (%)
- Net margin on lending (origination fee or interest spread minus defaults).
- Integration cost ($/mo)
- Monthly cost of embedded finance infrastructure (BaaS platform, engineering, compliance).
- Retention lift (%)
- Expected improvement in user retention from offering financial services. Studies show 5-15% lift.
What each result means
- Total monthly revenue
- Combined revenue from embedded payments, lending, and retention improvement.
- Net monthly ROI
- Revenue minus integration and infrastructure costs.
- Annual net ROI
- Projected annual net return from embedded finance.
- ARPU uplift ($/mo)
- Additional revenue per user per month from embedded finance.
- ARPU uplift (%)
- Percentage increase in ARPU from embedded finance.
- Payment interchange revenue
- Monthly revenue from embedded payment interchange share.
- Lending revenue
- Monthly revenue from embedded lending margin.
- Retention value
- Incremental revenue from improved user retention.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersMonthly active users = 50000, Current ARPU ($/mo) = 25, Payment adoption (%) = 30, Avg monthly spend ($) = 200 = 10 input(s) provided
- Calculate Total monthly revenueTotal monthly revenue = paymentRevenue + lendingRevenue + retentionValue242500 = $242,500
- Calculate Net monthly ROINet monthly ROI = totalMonthlyRevenue - integrationCostMonthly227500 = $227,500
- Calculate Annual net ROIAnnual net ROI = netMonthlyROI * 122730000 = $2,730,000
- Calculate ARPU upliftARPU uplift = monthlyActiveUsers > 04.85 = $4.85
Engine last updated .
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