Loan Default Rate Calculator

✖Number of Loans Defaulted refers to the count of loans within a portfolio or dataset that have failed to be repaid according to the agreed-upon terms.ⓘ Number of Loans Defaulted [NLD]			+10% -10%
✖Total Number of Loans Issued refers to the total count of loans disbursed or extended by a lender during a specific period.ⓘ Total Number of Loans Issued [TNLI]			+10% -10%

✖Loan Default Rate refers to the percentage of loans within a portfolio that have not been repaid according to the agreed-upon terms.ⓘ Loan Default Rate [LDR]

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Formula

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Loan Default Rate

Formula

`"LDR" = "modulus"("NLD")/("TNLI")`

Example

`"1.5"="modulus"("15")/("10")`

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Loan Default Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued)
LDR = modulus(NLD)/(TNLI)
This formula uses 1 Functions, 3 Variables

Functions Used

modulus - Modulus of a number is the remainder when that number is divided by another number., modulus

Variables Used

Loan Default Rate - Loan Default Rate refers to the percentage of loans within a portfolio that have not been repaid according to the agreed-upon terms.
Number of Loans Defaulted - Number of Loans Defaulted refers to the count of loans within a portfolio or dataset that have failed to be repaid according to the agreed-upon terms.
Total Number of Loans Issued - Total Number of Loans Issued refers to the total count of loans disbursed or extended by a lender during a specific period.

STEP 1: Convert Input(s) to Base Unit

Number of Loans Defaulted: 15 --> No Conversion Required
Total Number of Loans Issued: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

LDR = modulus(NLD)/(TNLI) --> modulus(15)/(10)

Evaluating ... ...

LDR = 1.5

STEP 3: Convert Result to Output's Unit

1.5 --> No Conversion Required

FINAL ANSWER

1.5 <-- Loan Default Rate

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Satyawati College (DU), New Delhi

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< 11 Financial Institutions Management Calculators

Loan Loss Provision Coverage Ratio

Go Loan Loss Provision Coverage Ratio = (Pre-Tax Income+Loan Loss Provision)/Net Charge Offs

Loan Default Rate

Go Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued)

Capital Adequacy Ratio

Go Capital Adequacy Ratio = (Tier One Capital+Tier Two Capital)/Risk Weighted Asset

Operational Efficiency Ratio

Go Operational Efficiency Ratio = (Operating Expense+Cost of Goods Sold)/Net Sales

Return on Operating Assets

Go Return on Operating Assets = modulus(Net Income)/Operating Assets

Net Interest Margin

Go Net Interest Margin = Net Interest Income/Average Interest Earning Assets

Cash Reserve Ratio

Go Cash Reserve Ratio = (Cash Reserves/Net Demand & Time Liabilities)*100

Tier 1 Capital Ratio

Go Tier One Capital Ratio = Tier One Capital/Risk Weighted Asset

Credit Deposit Ratio

Go Credit Deposit Ratio = (Total Advances/Total Deposits)*100

Debt Yield

Go Debt Yield = Net Operating Income/Loan Amount

Net Worth

Go Net Worth = Total Assets-Total Liabilities

Loan Default Rate Formula

Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued)
LDR = modulus(NLD)/(TNLI)

What is Loan Default Rate?

The Loan Default Rate, also known as the default rate, refers to the percentage of loans within a portfolio that have not been repaid according to the agreed-upon terms. In other words, it represents the proportion of loans that borrowers have failed to repay, leading to a loss for the lender.
Percentage of Loans: It's a measure of the number of loans that have defaulted relative to the total number of loans in a portfolio. This ratio is typically expressed as a percentage.
Non-Repayment: Default occurs when a borrower fails to make scheduled payments on a loan, usually over a specified period of time. This failure to repay may be due to various reasons such as financial hardship, bankruptcy, or insolvency.
Agreed-upon Terms: Loans have specific terms and conditions agreed upon by both the lender and the borrower. These terms typically include the amount borrowed, interest rate, repayment schedule, and any collateral or guarantees provided by the borrower.

How to Calculate Loan Default Rate?

Loan Default Rate calculator uses Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued) to calculate the Loan Default Rate, The Loan Default Rate signifies the proportion of loans issued by a lender that has been classified as bad debt written off due to non-repayment by borrowers. Loan Default Rate is denoted by LDR symbol.

How to calculate Loan Default Rate using this online calculator? To use this online calculator for Loan Default Rate, enter Number of Loans Defaulted (NLD) & Total Number of Loans Issued (TNLI) and hit the calculate button. Here is how the Loan Default Rate calculation can be explained with given input values -> 1.5 = modulus(15)/(10).

FAQ

What is Loan Default Rate?

The Loan Default Rate signifies the proportion of loans issued by a lender that has been classified as bad debt written off due to non-repayment by borrowers and is represented as LDR = modulus(NLD)/(TNLI) or Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued). Number of Loans Defaulted refers to the count of loans within a portfolio or dataset that have failed to be repaid according to the agreed-upon terms & Total Number of Loans Issued refers to the total count of loans disbursed or extended by a lender during a specific period.

How to calculate Loan Default Rate?

The Loan Default Rate signifies the proportion of loans issued by a lender that has been classified as bad debt written off due to non-repayment by borrowers is calculated using Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued). To calculate Loan Default Rate, you need Number of Loans Defaulted (NLD) & Total Number of Loans Issued (TNLI). With our tool, you need to enter the respective value for Number of Loans Defaulted & Total Number of Loans Issued and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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