💳 LGD Calculator – Loss Given Default
Calculate the Loss Given Default (LGD) — the percentage of a loan a lender expects to lose if a borrower defaults.
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What is Loss Given Default?
Loss Given Default (LGD) is a credit risk metric estimating the percentage of a loan’s exposure that a lender would lose if the borrower defaults, after accounting for any expected recovery (e.g. through collateral).
The formula
LGD = 100% − Recovery Rate, where Recovery Rate = (Recovery Amount / Exposure at Default) × 100. LGD is a core input in regulatory capital models (like Basel) and loan pricing.
This calculator is for general credit-risk education, not lending advice.
Last reviewed August 2026