How to use this calculator
- Enter incurred claims and loss expenses, underwriting expenses, earned premiums.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
This simplified convention differs from statutory methods that use written premium for the expense ratio; disclose consistent definitions.
Worked example
With incurred claims and loss expenses = 600000, underwriting expenses = 250000, earned premiums = 1000000, loss ratio is approximately 60%.
What the result means
Inspect underwriting profitability before investment income using a single earned-premium denominator.
Common questions
How should I interpret loss ratio?
Inspect underwriting profitability before investment income using a single earned-premium denominator.
What should I check before using this result?
This simplified convention differs from statutory methods that use written premium for the expense ratio; disclose consistent definitions.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.