AR Aging & Bad Debt Provision Calculator
Aged-receivable buckets weighted by historical default rates — the expected bad-debt provision for your books.
Formula
The aging method estimates expected credit loss by applying rising default rates to older buckets — a 90+ day invoice is far likelier to go bad than a current one. IFRS 9 / Ind AS 109 require this forward-looking provision. Use your own historical loss rates per bucket; the defaults here are illustrative.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need ar aging & bad debt provision calculator results fast? Analysts, founders, traders and finance professionals use the AR Aging & Bad Debt Provision Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About AR Aging & Bad Debt Provision Calculator
Aged-receivable buckets weighted by historical default rates — the expected bad-debt provision for your books. The aging method estimates expected credit loss by applying rising default rates to older buckets — a 90+ day invoice is far likelier to go bad than a current one. IFRS 9 / Ind AS 109 require this forward-looking provision. Use your own historical loss rates per bucket; the defaults here are illustrative. The governing relationship is provision = Σ bucket × default rate (0.5% / 2% / 10% / 50%). The AR Aging & Bad Debt Provision Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use AR Aging & Bad Debt Provision Calculator
- 1Enter Current (0–30 days) (currency), 31–60 days (currency), 61–90 days (currency), 90+ days (currency) into the AR Aging & Bad Debt Provision Calculator.
- 2The result is computed automatically using provision = Σ bucket × default rate (0.5% / 2% / 10% / 50%) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use AR Aging & Bad Debt Provision Calculator?
- ✓Computes ar aging & bad debt provision calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the AR Aging & Bad Debt Provision Calculator?+
AR Aging & Bad Debt Provision Calculator uses provision = Σ bucket × default rate (0.5% / 2% / 10% / 50%). The aging method estimates expected credit loss by applying rising default rates to older buckets — a 90+ day invoice is far likelier to go bad than a current one. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the AR Aging & Bad Debt Provision Calculator need?+
Enter Current (0–30 days) (currency), 31–60 days (currency), 61–90 days (currency), 90+ days (currency) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the AR Aging & Bad Debt Provision Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the AR Aging & Bad Debt Provision Calculator?+
IFRS 9 / Ind AS 109 require this forward-looking provision. Use your own historical loss rates per bucket; the defaults here are illustrative.
What is the AR Aging & Bad Debt Provision Calculator based on?+
The method follows authoritative sources: IFRS 9 / Ind AS 109 — expected credit loss; AR aging method. The formula and references are shown on the page so you can verify and cite the result.
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