How to Calculate Loss Given Default?
Loss Given Default calculator uses Loss Given Default = 1-Recovery Rate to calculate the Loss Given Default, Loss Given Default (LGD) is a financial metric used in credit risk analysis to measure the expected loss incurred by a lender in the event of a borrower's default on a loan or other credit obligation. Loss Given Default is denoted by LGD symbol.
How to calculate Loss Given Default using this online calculator? To use this online calculator for Loss Given Default, enter Recovery Rate (Rr) and hit the calculate button. Here is how the Loss Given Default calculation can be explained with given input values -> 0.6 = 1-0.4.