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Loan Default Rate Formula

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Loan Default Rate refers to the percentage of loans within a portfolio that have not been repaid according to the agreed-upon terms. Check FAQs
LDR=modu̲sNLDTNLI
LDR - Loan Default Rate?NLD - Number of Loans Defaulted?TNLI - Total Number of Loans Issued?

Loan Default Rate Example

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With units
Only example

Here is how the Loan Default Rate equation looks like with Values.

Here is how the Loan Default Rate equation looks like with Units.

Here is how the Loan Default Rate equation looks like.

1.5Edit=modu̲s15Edit10Edit
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HomeIcon Home » Category Financial » Category Financial Institutions Management » fx Loan Default Rate

Loan Default Rate Solution

Follow our step by step solution on how to calculate Loan Default Rate?

FIRST Step Consider the formula
LDR=modu̲sNLDTNLI
Next Step Substitute values of Variables
∴ LDR=modu̲s1510
Next Step Prepare to Evaluate
∴ LDR=modu̲s1510
LAST Step Evaluate
∴LDR=1.5

Loan Default Rate Formula Elements

Variables
Functions
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.
Symbol: LDR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Loan Default RateOpen Variable
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.
Symbol: NLD
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Number of Loans DefaultedOpen Variable
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.
Symbol: TNLI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Total Number of Loans IssuedOpen Variable
modulus
Modulus of a number is the remainder when that number is divided by another number.
Syntax: modulus

Other formulas in Financial Institutions Management category

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NW=TA-TL
​Go Net Interest Margin
NIM=NIIAIEA
​Go Operational Efficiency Ratio
OER=OPEX+COGSNS
​Go Loan Loss Provision Coverage Ratio
LLPCR=EBT+LLPNCO

How to Evaluate Loan Default Rate?

Loan Default Rate evaluator uses Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued) to evaluate 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 evaluate Loan Default Rate using this online evaluator? To use this online evaluator for Loan Default Rate, enter Number of Loans Defaulted (NLD) & Total Number of Loans Issued (TNLI) and hit the calculate button.

FAQs on Loan Default Rate

What is the formula to find Loan Default Rate?
The formula of Loan Default Rate is expressed as Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued). Here is an example- 1.5 = modulus(15)/(10).
How to calculate Loan Default Rate?
With Number of Loans Defaulted (NLD) & Total Number of Loans Issued (TNLI) we can find Loan Default Rate using the formula - Loan Default Rate = modulus(Number of Loans Defaulted)/(Total Number of Loans Issued). This formula also uses Modulus (modulus) function(s).
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