Measure your lending team's efficiency by calculating the Average Time to Close (ATC) and Monthly Loan Throughput Rate.
This calculator determines efficiency using two primary metrics:
1. Average Time to Close (ATC) = Total Days to Close All Loans (TDCL) / Total Number of Loans Closed (TNC)
2. Average Loan Throughput Rate (ALTR) = (Total Number of Loans Closed / Measurement Period) × 30
*ALTR normalizes your data to show the projected volume of closed loans per month.
Example 1 (Processing Speed):
Example 2 (Throughput Volume):
In the competitive world of lending, speed and efficiency are directly correlated with profitability and customer satisfaction. The Loan Processing Productivity Calculator is an essential tool designed for mortgage brokers, bank managers, and lending officers who need to quantify their operational performance. Unlike general productivity tools, this calculator focuses specifically on the metrics that matter most in the lending industry: how fast you can close a loan and how many loans your team can handle over time.
One of the biggest challenges in loan origination is managing the "pipeline." A pipeline that moves too slowly ties up capital and frustrates borrowers, potentially leading to rate lock expirations or lost deals. By using the Loan Processing Productivity Calculator, you can calculate the Average Time to Close (ATC). This metric acts as a definitive "process efficiency indicator." A lower ATC generally signals that your processing, underwriting, and closing teams are working in harmony, minimizing friction. Conversely, a high ATC suggests bottlenecks—perhaps in document collection or third-party vendor delays.
Additionally, this tool calculates the Average Loan Throughput Rate (ALTR). While speed is important, volume keeps the lights on. The ALTR metric normalizes your closed loan data into a "per month" format, regardless of whether you are measuring a week, a quarter, or a year. This allows for accurate financial forecasting and capacity planning. As noted in industry resources like Wikipedia's Mortgage Loan overview and the Mortgage Bankers Association, tracking these key performance indicators (KPIs) is critical for maintaining a healthy lending margin.
Whether you are handling complex FHA loans or standard Conventional mortgages, the Loan Processing Productivity Calculator adapts to your data. By consistently entering your pipeline statistics, you can build a historical record of performance, identifying seasonal trends or the impact of new software implementations. It transforms raw operational data into actionable strategic intelligence.
Explore all remaining calculators in this Finance & Banking category.
Explore specialized calculators for your industry and use case.
The industry average varies, but generally, a 30 to 45-day closing cycle is considered standard for conventional loans. High-performing teams often achieve 21 days or less. FHA and VA loans typically take longer due to stricter appraisal and underwriting requirements.
You need to look at every loan closed in your selected period. Calculate the number of days each specific loan took (from application to funding), and then sum those days together. This aggregate number is your TDCL input.
Different loan types have different regulatory hurdles. For example, a "Commercial" loan involves complex financial analysis that a residential "Conventional" loan does not. Comparing the ATC of mixed portfolios without context can lead to inaccurate performance assessments.
Yes. If you enter the days for a single loan in the TDCL field and enter "1" for the Total Number of Loans, the calculator will simply show you the time to close for that specific file, though the tool is most powerful when analyzing batches.