Finance

LGD Calculator (Loss Given Default)

Estimate the loss percentage when a borrower defaults on their obligation.

Exposure at Default (EAD) ($)

Recovery Amount ($)

Probability of Default (%)

For Expected Loss calculation

Recovery Costs ($)

Formulas:
LGD = 1 − Recovery Rate
Recovery Rate = (Recovery − Costs) / EAD
Expected Loss = PD × LGD × EAD