LGD (Loss Given Default) Calculator
Result
LGD (Loss Given Default) Calculator Calculate Loss Given Default (LGD) for credit risk assessment. Measures the percentage of loan lost if borrower defaults, accounting for recovery value. Used in banking credit models and Basel III capital calculations. — free online calculator.
Formula
- LGD (Loss Given Default) Calculator calculates its result from Loan Amount, Recovery Value. It uses the formula LGD = (Loan Amount - Recovery Value) ÷ Loan Amount × 100%. Change any input to recalculate the result instantly.
- The main inputs are Loan Amount, Recovery Value. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: LGD (Loss Given Default)
- Loan Amount: 10
- Recovery Value: 3
Using Loan Amount = 10, Recovery Value = 3, the calculated result is 0.7.
Sample result: Calculating…
Frequently asked questions
What does the LGD (Loss Given Default) calculate?
LGD (Loss Given Default) Calculator Calculate Loss Given Default (LGD) for credit risk assessment. Measures the percentage of loan lost if borrower defaults, accounting for recovery value. Used in banking credit models and Basel III capital calculations. — free online calculator.
Which values should I enter?
Enter Loan Amount, Recovery Value using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: LGD = (Loan Amount - Recovery Value) ÷ Loan Amount × 100%.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.