MortgageBrokerTools

Mortgage Broker Revenue Calculator

Project brokerage revenue and profit from funded volume, and find the number of loans a month that covers fixed costs.

Last reviewed

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Free · No sign-up · Runs in your browser

A brokerage is a business with high fixed costs and lumpy revenue. Rent, licensing, software, processing and salaries continue whether or not a loan funds this month, and commission arrives only at closing. The number that matters most is therefore not revenue but the volume at which fixed costs are covered.

This projects both. Enter funded loans per month, average loan size and commission, add your fixed and per-file costs, and it produces monthly and period revenue, profit, margin, and the break-even loan count. Everything comes from your figures; nothing here assumes a market or a growth rate.

Your numbers

Results update as you type. Nothing is sent anywhere.

Result

Monthly profit

$12,240

Monthly revenue
$32,640
Monthly funded volume
$2,040,000
Monthly costs
$20,400
Break-even loans per month
3.6
Revenue per funded loan
$5,440
Profit margin
37.5%
Revenue over the period
$391,680
Profit over the period
$146,880

Break-even is the number of funded loans per month that covers fixed costs at your current commission and variable cost per file.

These are planning figures based on your assumptions, not a forecast of market conditions.

How to use the mortgage broker revenue calculator

  1. Enter the funded loans per month and your average loan size.
  2. Enter the commission rate you earn on funded volume.
  3. Add fixed monthly costs and any variable cost per file.
  4. Read the break-even figure and compare it against your recent months.

What people use this for

  • Setting a monthly volume target that actually covers the overhead.
  • Testing whether adding a fixed cost - a hire, an office, a platform - is supportable.
  • Understanding how sensitive profit is to average loan size.
  • Planning a year from a realistic monthly run rate.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

A small brokerage

6 loans a month at $340,000 average, 1.6% commission, $18,000 fixed costs, $400 per file.

Monthly profit
$12,240
Break-even loans per month
3.6
Profit margin
37.5%

A larger operation

22 loans a month at $290,000 average, 1.35% commission, $62,000 fixed costs, $350 per file.

Monthly profit
$16,430
Monthly revenue
$86,130
Break-even loans per month
17.4

Break-even is the number to know by heart

Fixed costs divided by the contribution from each funded loan gives the loans per month at which the business covers itself. Below that number the brokerage loses money regardless of how busy it feels; above it, each additional file is close to pure margin.

Because the contribution per loan depends on average loan size, the break-even count moves whenever the mix does. A brokerage whose average loan size falls twenty percent needs meaningfully more files for the same result.

Revenue is lumpy and costs are not

Fixed costs arrive on a schedule. Commission arrives when files close, which is neither evenly spaced nor entirely predictable. That mismatch is the reason well-run brokerages hold several months of fixed costs in reserve rather than operating from the current month’s closings.

The period projection here multiplies a steady monthly figure, which is a planning convenience rather than a forecast. Real months vary considerably.

What this deliberately excludes

It has no view on rates, on volumes, on seasonality or on the market. It takes the assumptions you supply and works out their consequences.

That is the useful function of a model of this kind. A projection that also predicted origination volume would be presenting a guess as an output.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

  • Monthly revenue is funded volume multiplied by the commission rate you enter.
  • Costs are fixed monthly costs plus the per-file cost multiplied by loans funded.
  • Break-even is fixed costs divided by the contribution per loan after variable cost.
  • Compensation arrangements, licensing models and permitted fee structures vary by state and by lender. Use your own figures.
  • Results are estimates. Real quotes depend on credit, income, property, loan programme and lender pricing at the time of application.
  • Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator is provided for informational and educational purposes only. Results are estimates and may not reflect actual rates, fees, taxes, or market conditions.

This website is not a lender, a mortgage broker or a financial adviser. It does not originate loans, does not accept applications and does not forward your details to anyone.

Actual loan terms depend on credit history, income, the property, the loan programme and lender pricing at the time of application. Only a lender can tell you what you qualify for.

Frequently asked questions

What commission rate should I use?

Your own. Compensation is set by your lender agreements and by regulation, and it varies. A default here would be an invented number.

Does this include loan officer splits?

Only if you include them. Treat officer compensation as a variable cost per file, or as part of fixed costs where it is salaried.

Why does average loan size matter so much?

Because commission is a percentage of volume while most costs are per file. A larger average loan raises revenue without raising the cost of processing it.

Is this a forecast?

No. It is arithmetic on assumptions you provide. It makes no prediction about origination volume or market conditions.

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