---
title: "T203 · RAROC Loan Pricing Model"
method: POST
path: "/v1/tools/raroc_loan_pricing_model"
---

# T203 · RAROC Loan Pricing Model

`POST /v1/tools/raroc_loan_pricing_model`

## Request

- Base URL: `https://ainumbers.co`
- URL: `https://ainumbers.co/v1/tools/raroc_loan_pricing_model`
- Auth: none declared

Model risk-adjusted return on capital for loan pricing. Inputs: loan amount, margin, fees, cost of funds, expected loss (from T198), capital allocation (from T201), and operating cost. Outputs RAROC, economic profit/loss, minimum margin for target RAROC, and Policy Mandate JSON loan pricing record. Client-side. Works offline. Zero PII.

**Tool URL:** https://ainumbers.co/tools/203-raroc-loan-pricing-model.html
**AP2/Policy Mandate export:** yes

## Request body

- object
  - `loan_amount` number, required
  - `maturity_years` number, required
  - `all_in_margin_bps` number, required: All-in margin over reference rate (bps)
  - `cost_of_funds_bps` number, required: Bank internal funding cost over reference rate (bps)
  - `upfront_fee_pct` number, required: Upfront fee as % of facility
  - `annual_fee_pct` number, required: Annual agency/commitment fee as % of facility
  - `expected_loss_annual` number, required: Annual expected loss ($) — from T198
  - `rwa` number, required: Risk-Weighted Assets ($) — from T201
  - `cet1_ratio_pct` number, required: CET1 capital ratio held against this RWA (%)
  - `opex_ratio_pct` number, required: Operating cost as % of loan p.a.
  - `hurdle_rate_pct` number, required: Target RAROC hurdle rate (%)
  - `cost_of_equity_pct` number, required: CAPM cost of equity for Economic Profit (%)

## Response `200`

Successful tool execution result

- object
  - `nii` number: Annual Net Interest Income ($)
  - `fee_income_annualised` number
  - `rani` number: Risk-Adjusted Net Income ($)
  - `economic_capital` number
  - `raroc_pct` number
  - `hurdle_rate_pct` number
  - `raroc_vs_hurdle_pct` number
  - `economic_profit` number
  - `minimum_margin_bps` number
  - `deal_verdict` 'approved' | 'rejected'
  - `ap2_mandate` object

---

[API](https://skmtc.dev/ainumbers/apis/ainumbers-co-fintech-intelligence-suite.md) · [All operations](https://skmtc.dev/ainumbers/apis/ainumbers-co-fintech-intelligence-suite/llms.txt) · [OpenAPI document](https://skmtc.dev/ainumbers/apis/ainumbers-co-fintech-intelligence-suite/revisions/b462e4f5bb28?raw)