Free calculator
Trail Book Run-off Calculator
Run-off is the share of your book that leaves each year. Set yours and see what it takes out of your trail, compounding year on year.
Trail lost over 5 years
$166,372
Annual trail today
$72,000
Lost this year
$14,400
Kept if run-off is halved
$71,734
Trail remaining each year at 20% run-off
General information only — not credit advice. Figures are indicative estimates and may not reflect your circumstances. Consider seeking advice from a licensed professional before acting on this information.
How it works
- Annual trail is the book multiplied by the trail rate. Run-off removes a percentage of that book every year, and the loans that leave in year one are still gone in year two, so the loss compounds.
- Cumulative loss adds up each year's missing trail against a book that had no run-off at all.
- The kept figure compares your run-off with half of it, which is the difference brokers who reprice and review proactively report.
Assumptions
- No new settlements are added; this is what happens to the book you have today.
- Loans leave evenly across the book. In practice run-off concentrates in loans settled two to four years ago and in fixed rates that have just expired.
- Trail rate is flat across lenders and years.
Frequently asked questions
What is trail book run-off?
The percentage of your loan book, by balance or by loan count, that leaves each year through refinance, sale, or full repayment. Every loan that leaves takes its trail with it.
What is a normal run-off rate?
Commonly cited figures for Australian residential books sit between 15% and 25% a year, rising when rates move and fixed periods end. Books under 10% are unusual and command higher valuation multiples.
Why does the loss grow every year?
Because run-off is applied to a shrinking book and the earlier losses never come back. Over five years a 20% run-off removes roughly two thirds of the trail you started with.
How do brokers reduce run-off?
By knowing which clients are about to move: fixed-rate expiries, interest-only conversions, loans coming out of their clawback window, and rates that have drifted above what the same lender offers new customers. Annual reviews and proactive repricing catch most of it.
MyLoanBook runs these numbers on your real commission file, every month.
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