LGD Calculator – Loss Given Default
LGD = (EAD − Recovery) / EAD
How to Use This Calculator
Provide EAD and expected recovery. The output is LGD in percent.
Formula
LGD = (EAD − Recovery) / EAD × 100
About LGD
LGD is a core credit risk parameter used with PD and EAD to estimate expected loss.
Frequently Asked Questions
Is LGD capped at 100%?
Yes, practical LGD ranges from 0% to 100%.