How to Calculate Approval Rate

Approval Rate Calculator .ar-calculator-wrapper { max-width: 600px; margin: 20px auto; padding: 30px; background-color: #f9f9f9; border: 1px solid #e0e0e0; border-radius: 8px; font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; box-shadow: 0 4px 6px rgba(0,0,0,0.05); } .ar-calculator-wrapper h3 { text-align: center; margin-top: 0; color: #333; } .ar-input-group { margin-bottom: 20px; } .ar-input-group label { display: block; font-weight: 600; margin-bottom: 8px; color: #555; } .ar-input-group input { width: 100%; padding: 12px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; box-sizing: border-box; } .ar-input-group input:focus { border-color: #0073aa; outline: none; } .ar-calc-btn { width: 100%; padding: 15px; background-color: #0073aa; color: white; border: none; border-radius: 4px; font-size: 18px; font-weight: bold; cursor: pointer; transition: background-color 0.3s; } .ar-calc-btn:hover { background-color: #005177; } .ar-result-box { margin-top: 25px; padding: 20px; background-color: #fff; border: 1px solid #ddd; border-radius: 4px; display: none; } .ar-result-row { display: flex; justify-content: space-between; margin-bottom: 10px; font-size: 16px; } .ar-result-row.total { margin-top: 15px; padding-top: 15px; border-top: 2px solid #eee; font-weight: bold; font-size: 20px; color: #2c3e50; } .ar-error { color: #d32f2f; font-size: 14px; margin-top: 5px; display: none; } .ar-visualization { margin-top: 15px; height: 20px; background-color: #e0e0e0; border-radius: 10px; overflow: hidden; position: relative; } .ar-vis-bar { height: 100%; background-color: #28a745; width: 0%; transition: width 0.5s ease-in-out; }

Approval Rate Calculator

Total Processed: 0
Rejections: 0
Rejection Rate: 0%
Approval Rate: 0%
function calculateApprovalRate() { // Get input values var totalInput = document.getElementById('ar_total_apps'); var approvedInput = document.getElementById('ar_approved_count'); var errorDiv = document.getElementById('ar_error_msg'); var resultBox = document.getElementById('ar_results'); var total = parseFloat(totalInput.value); var approved = parseFloat(approvedInput.value); // Reset error state errorDiv.style.display = 'none'; errorDiv.innerHTML = "; resultBox.style.display = 'none'; // Validation logic if (isNaN(total) || total <= 0) { alert("Please enter a valid total number of applications (must be greater than 0)."); return; } if (isNaN(approved) || approved total) { errorDiv.innerHTML = "Approvals cannot exceed total applications."; errorDiv.style.display = 'block'; return; } // Calculation logic var approvalRate = (approved / total) * 100; var rejected = total – approved; var rejectionRate = (rejected / total) * 100; // Display results document.getElementById('res_total').innerHTML = total.toLocaleString(); document.getElementById('res_rejected').innerHTML = rejected.toLocaleString(); // Formatting percentages to 2 decimal places document.getElementById('res_app_rate').innerHTML = approvalRate.toFixed(2) + '%'; document.getElementById('res_rej_rate').innerHTML = rejectionRate.toFixed(2) + '%'; // Update Visualization Bar document.getElementById('ar_vis_bar').style.width = approvalRate + '%'; // Change color based on rate (Visual feedback) var bar = document.getElementById('ar_vis_bar'); if(approvalRate < 50) { bar.style.backgroundColor = '#dc3545'; // Red } else if (approvalRate < 80) { bar.style.backgroundColor = '#ffc107'; // Yellow } else { bar.style.backgroundColor = '#28a745'; // Green } resultBox.style.display = 'block'; }

How to Calculate Approval Rate

Calculating an approval rate is a fundamental metric used in various industries, from finance and lending to software testing and college admissions. Essentially, it measures the percentage of requests, applications, or items that meet a specific set of criteria compared to the total number submitted.

Understanding your approval rate helps in identifying the efficiency of a process, the quality of incoming leads, or the strictness of acceptance criteria.

The Approval Rate Formula

The math behind calculating an approval rate is straightforward. It involves a simple ratio of successes to total attempts, multiplied by 100 to get a percentage.

Approval Rate (%) = (Number of Approvals / Total Number of Applications) × 100

Step-by-Step Calculation Guide

  1. Determine the Total Volume: Count the total number of applications, requests, or items processed during a specific time frame. This is your denominator.
  2. Count the Approvals: Count how many of those specific applications were successfully approved or accepted. This is your numerator.
  3. Divide: Divide the number of approvals by the total number of applications.
  4. Convert to Percentage: Multiply the result by 100 to get the percentage.

Real-World Examples

Example 1: Mortgage Lending

A bank receives 500 loan applications in a month. After underwriting review, 375 of these loans are funded (approved), while the rest are denied.

  • Calculation: 375 ÷ 500 = 0.75
  • Approval Rate: 0.75 × 100 = 75%

Example 2: Software Quality Assurance (Pass Rate)

A QA team runs a suite of 1,200 automated tests. 1,140 tests pass successfully without bugs.

  • Calculation: 1,140 ÷ 1,200 = 0.95
  • Approval (Pass) Rate: 0.95 × 100 = 95%

Why is Approval Rate Important?

Monitoring this metric provides critical insights:

  • Process Efficiency: A surprisingly low approval rate might indicate that the application process is too confusing, leading to errors and automatic rejections.
  • Lead Quality: In marketing, a low approval rate for leads often means the marketing campaign is targeting the wrong audience.
  • Risk Management: In finance, an approval rate that is too high might suggest that lending criteria are too loose, potentially increasing the risk of default.

Inverse Metric: Rejection Rate

The flip side of the approval rate is the rejection rate. If your approval rate is 80%, your rejection rate is naturally 20%.

Rejection Rate = 100% – Approval Rate

Use the calculator above to instantly determine both metrics based on your specific data inputs.

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