1. What is Market Share?

Market share represents the portion of a market controlled by a particular company or product. In lending, it shows what percentage of total loans in the market are issued by your company.

2. How Does the Calculator Work?

The calculator uses the market share formula:

Where:

• \( \text{Company Loans} \) — Total value of loans issued by your company
• \( \text{Total Loans} \) — Total value of all loans in the market

Explanation: The formula calculates what percentage of the total market your company controls based on loan volume.

3. Importance of Market Share Calculation

Details: Understanding market share helps assess competitive position, measure growth, and inform business strategy in the lending market.

4. Using the Calculator

Tips: Enter your company's total loan value and the total market loan value in the same currency. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What time period should I use for loan values?
A: Typically use annual loan volumes, but you can calculate for any period as long as both values cover the same timeframe.

Q2: How do I get total market loan data?
A: Industry reports, regulatory filings, or market research firms often provide total market loan data.

Q3: What's a good market share percentage?
A: This varies by industry and market. Generally, higher is better, but market leaders might have 15-30% in competitive markets.

Q4: Should I use number of loans or loan value?
A: Loan value (currency amount) is typically more meaningful as it accounts for different loan sizes.

Q5: How often should market share be calculated?
A: Regular calculation (quarterly or annually) helps track competitive position over time.