We use metrics reported by our partner microfinance institutions (MFIs) to calculate the impact of your generosity. Your gift multiplies over time as the loan is repaid and the MFI loans it out again. Using the formulas below, we are able to project how much your impact grows over time.
First, to find how many loans your gift will support we get the Average Loan Term amongst our partners in the region. We use this to find out how many times your gift has been loaned, repaid and loaned again over the next five, 10, 15, 25 years and even further.
Loans Contributed = Length of Time / Avg. Loan Term
5 = Five Years / 12 months
Next we find the “Power” of your gift by calculating how the funds have been leveraged over time. Then we factor in the MFI’s Repayment Rate to account for any defaulted % of their portfolio.
Power = (Gift Amount+ (Gift Amount x Loans Contributed)) x Repayment Rate)
$53.50 = ($10 + ($10 X 5 )) x 97%
To calculate the total number of people helped we get the Average Family Size amongst our partners in the region and multiply it by the number of loans your gift contributes to over time.
People Helped = Loans Contributed * Avg. Family Size
30 = 5 x 6
Use the Power of One tool to learn how your gift grows over time