Expected Credit Loss Calculator (PD × LGD)
Expected loss on a credit exposure from default probability, loss-given-default and exposure — the IFRS 9 / Basel building block.
Formula
Expected loss is priced, unexpected loss is capitalized: a bond paying 240 bp against 127 bp of EL earns ~113 bp for risk and liquidity. IFRS 9 stage-1 provisions and Basel IRB capital both start from exactly this triple product.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need expected credit loss calculator results fast? Analysts, founders, traders and finance professionals use the Expected Credit Loss Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Expected Credit Loss Calculator (PD × LGD)
Expected loss on a credit exposure from default probability, loss-given-default and exposure — the IFRS 9 / Basel building block. Expected loss is priced, unexpected loss is capitalized: a bond paying 240 bp against 127 bp of EL earns ~113 bp for risk and liquidity. IFRS 9 stage-1 provisions and Basel IRB capital both start from exactly this triple product. The governing relationship is EL = EAD × PD × LGD. The Expected Credit Loss 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 Expected Credit Loss Calculator (PD × LGD)
- 1Enter Exposure at default (EAD) (currency), Probability of default (%), Loss given default (%), Earned credit spread (bp) into the Expected Credit Loss Calculator.
- 2The result is computed automatically using EL = EAD × PD × LGD — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Expected Credit Loss Calculator (PD × LGD)?
- ✓Computes expected credit loss 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 Expected Credit Loss Calculator?+
Expected Credit Loss Calculator uses EL = EAD × PD × LGD. Expected loss is priced, unexpected loss is capitalized: a bond paying 240 bp against 127 bp of EL earns ~113 bp for risk and liquidity. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Expected Credit Loss Calculator need?+
Enter Exposure at default (EAD) (currency), Probability of default (%), Loss given default (%), Earned credit spread (bp) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Expected Credit Loss 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 Expected Credit Loss Calculator?+
IFRS 9 stage-1 provisions and Basel IRB capital both start from exactly this triple product.
What is the Expected Credit Loss Calculator based on?+
The method follows authoritative sources: BCBS — IRB approach; IFRS 9 impairment. The formula and references are shown on the page so you can verify and cite the result.
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