How to use this calculator
- Enter exposure at default, probability of default (%), loss given default (%).
- 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
Not an IFRS9/CECL model; no lifetime migration, discounting, collateral uncertainty or regulatory compliance claim.
Worked example
With exposure at default = 100000, probability of default (%) = 2, loss given default (%) = 40, expected credit loss is approximately 800.
What the result means
Combine three explicit assumptions into a single-period expected loss estimate.
Common questions
How should I interpret expected credit loss?
Combine three explicit assumptions into a single-period expected loss estimate.
What should I check before using this result?
Not an IFRS9/CECL model; no lifetime migration, discounting, collateral uncertainty or regulatory compliance claim.
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.