{"product_id":"lgd","title":"LGD Calculator – Loss Given Default","description":"\u003cstyle\u003e\n.lgd-calculator,\n.lgd-calculator *,\n.lgd-calculator *::before,\n.lgd-calculator *::after{box-sizing:border-box}\n.lgd-calculator{--ink:#0f172a;--muted:#475569;--border:#e2e8f0;--surface:#ffffff;--tint:#f8fafc;--primary:#1d4ed8;--accent:#c2410c;--accent-hover:#9a3412;--chart-1:#1e40af;--chart-2:#0d9488;--chart-3:#7c3aed;--chart-4:#be185d;--chart-5:#334155;container-type:inline-size;width:100%;max-width:1200px;margin:0 auto;padding:24px;color:var(--ink);background:var(--surface);border:1px solid var(--border);border-radius:8px;box-shadow:0 1px 2px rgba(15,23,42,.06);font-family:Inter,ui-sans-serif,system-ui,-apple-system,BlinkMacSystemFont,\"Segoe UI\",sans-serif;font-size:15px;line-height:1.55;overflow-wrap:anywhere}\n.lgd-calculator a{color:var(--primary);text-decoration-thickness:1px;text-underline-offset:2px}\n.lgd-calculator a:hover{color:#1e40af}\n.lgd-calculator button,.lgd-calculator input{font:inherit}\n.lgd-calculator button{touch-action:manipulation}\n.lgd-calculator input[type=\"text\"]{width:100%;min-height:44px;padding:10px 12px;border:1px solid #cbd5e1;border-radius:6px;background:var(--surface);color:var(--ink);font-size:15px;font-variant-numeric:tabular-nums;outline:none;transition:border-color .15s ease,box-shadow .15s ease}\n.lgd-calculator input[type=\"text\"]:hover{border-color:#94a3b8}\n.lgd-calculator input[type=\"text\"]:focus-visible,.lgd-calculator button:focus-visible,.lgd-calculator input[type=\"radio\"]:focus-visible+span{outline:3px solid rgba(29,78,216,.28);outline-offset:2px}\n.lgd-calculator input[aria-invalid=\"true\"]{border-color:#b91c1c;box-shadow:0 0 0 2px rgba(185,28,28,.12)}\n.lgd-calculator h2,.lgd-calculator h3,.lgd-calculator p{margin-top:0}\n.lgd-calculator h2{font-size:24px;line-height:1.25;font-weight:700;margin-bottom:8px;letter-spacing:-.02em}\n.lgd-calculator h3{font-size:18px;line-height:1.35;font-weight:650;margin-bottom:12px}\n.lgd-calculator p{margin-bottom:12px}\n.lgd-header{min-width:0}\n.lgd-subtitle{max-width:760px;color:var(--muted);margin-bottom:16px}\n.lgd-pills{display:flex;flex-wrap:wrap;gap:8px;margin:0 0 16px}\n.lgd-pill{display:inline-flex;align-items:center;gap:6px;padding:6px 10px;border:1px solid var(--border);border-radius:999px;background:var(--tint);color:var(--muted);font-size:13px;font-weight:500;min-width:0}\n.lgd-pill strong{color:var(--ink);font-variant-numeric:tabular-nums}\n.lgd-toolbar{display:flex;flex-wrap:wrap;gap:8px;align-items:center;margin-bottom:24px;min-width:0}\n.lgd-btn{display:inline-flex;align-items:center;justify-content:center;gap:10px;min-height:44px;padding:11px 18px;border-radius:6px;border:1px solid transparent;font-size:15px;font-weight:650;line-height:1;cursor:pointer;white-space:nowrap;transition:background .15s ease,border-color .15s ease,box-shadow .15s ease,transform .05s ease}\n.lgd-btn:active{transform:translateY(1px)}\n.lgd-btn-primary{background:var(--accent);color:#fff;border-color:var(--accent)}\n.lgd-btn-primary:hover{background:var(--accent-hover);border-color:var(--accent-hover);box-shadow:0 2px 5px rgba(15,23,42,.14)}\n.lgd-btn-secondary{background:var(--surface);color:var(--ink);border-color:#cbd5e1}\n.lgd-btn-secondary:hover{background:var(--tint);border-color:#94a3b8;box-shadow:0 2px 5px rgba(15,23,42,.08)}\n.lgd-btn svg{width:18px;height:18px;flex:0 0 auto}\n.lgd-workspace{display:grid;grid-template-columns:minmax(0,1fr) minmax(0,1fr);gap:24px;align-items:start;margin-bottom:24px;min-width:0}\n.lgd-panel{min-width:0;border:1px solid var(--border);border-radius:8px;background:var(--surface);padding:20px;box-shadow:0 1px 2px rgba(15,23,42,.04)}\n.lgd-panel-title{display:flex;align-items:flex-start;justify-content:space-between;gap:12px;margin-bottom:16px;min-width:0}\n.lgd-panel-title h3{margin-bottom:0}\n.lgd-panel-kicker{font-size:13px;font-weight:650;color:var(--primary);text-transform:uppercase;letter-spacing:.06em}\n.lgd-fields{display:grid;gap:16px;min-width:0}\n.lgd-field{display:grid;gap:6px;min-width:0}\n.lgd-label{font-size:14px;font-weight:600;color:var(--ink)}\n.lgd-help{min-height:20px;color:var(--muted);font-size:13px;font-weight:500;line-height:1.45}\n.lgd-error{min-height:19px;color:#991b1b;font-size:13px;font-weight:600;line-height:1.4}\n.lgd-segmented{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:8px;border:0;padding:0;margin:0;min-width:0}\n.lgd-segmented legend{display:block;width:100%;margin-bottom:6px;font-size:14px;font-weight:600;color:var(--ink)}\n.lgd-segment-option{position:relative;display:block;min-width:0}\n.lgd-segment-option input{position:absolute;opacity:0;pointer-events:none}\n.lgd-segment-option span{display:flex;align-items:center;justify-content:center;min-height:44px;padding:9px 10px;border:1px solid #cbd5e1;border-radius:6px;background:var(--surface);color:var(--muted);font-size:14px;font-weight:650;text-align:center;cursor:pointer;transition:background .15s ease,border-color .15s ease,color .15s ease}\n.lgd-segment-option input:checked+span{background:#eff6ff;border-color:var(--primary);color:#1e3a8a;box-shadow:inset 0 0 0 1px var(--primary)}\n.lgd-result-hero{padding:18px;border:1px solid #bfdbfe;border-radius:8px;background:#eff6ff;margin-bottom:16px;min-width:0}\n.lgd-result-label{font-size:13px;font-weight:650;color:#1e3a8a;margin-bottom:4px}\n.lgd-result-primary{font-size:30px;line-height:1.15;font-weight:700;letter-spacing:-.025em;font-variant-numeric:tabular-nums;color:#172554;overflow-wrap:anywhere}\n.lgd-result-sub{margin-top:6px;color:#334155;font-size:13px;font-weight:500}\n.lgd-result-grid{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:12px;min-width:0}\n.lgd-result-card{min-width:0;padding:14px;border:1px solid var(--border);border-radius:8px;background:var(--tint)}\n.lgd-result-card-label{font-size:13px;font-weight:600;color:var(--muted);margin-bottom:4px}\n.lgd-result-card-value{font-size:20px;line-height:1.25;font-weight:700;font-variant-numeric:tabular-nums;color:var(--ink);overflow-wrap:anywhere}\n.lgd-result-card-note{margin-top:4px;color:var(--muted);font-size:13px;font-weight:500}\n.lgd-invalid-state{padding:18px;border:1px dashed #94a3b8;border-radius:8px;background:var(--tint);color:var(--muted);font-size:14px}\n.lgd-section{min-width:0;margin-top:24px;padding-top:24px;border-top:1px solid var(--border)}\n.lgd-section-head{max-width:760px;margin-bottom:16px}\n.lgd-section-head p{color:var(--muted);margin-bottom:0}\n.lgd-chart-card{display:grid;gap:16px;min-width:0;padding:20px;border:1px solid var(--border);border-radius:8px;background:var(--surface);box-shadow:0 1px 2px rgba(15,23,42,.04)}\n.lgd-chart-cluster{display:grid;grid-template-columns:minmax(240px,320px) minmax(0,390px);align-items:end;justify-content:center;gap:24px;min-width:0}\n.lgd-chart-visual{display:grid;justify-items:center;align-content:center;min-width:0;width:100%;max-width:320px;margin:0 auto}\n.lgd-chart-total{width:100%;margin-bottom:8px;text-align:center;color:var(--muted);font-size:13px;font-weight:600}\n.lgd-chart-total strong{display:block;color:var(--ink);font-size:20px;font-weight:700;font-variant-numeric:tabular-nums}\n.lgd-chart-svg{display:block;width:min(100%,320px);height:auto;aspect-ratio:1\/1;overflow:visible}\n.lgd-chart-empty{display:none;width:100%;padding:16px;border:1px dashed #94a3b8;border-radius:8px;background:var(--tint);color:var(--muted);font-size:14px;text-align:center}\n.lgd-chart-empty[aria-hidden=\"false\"]{display:block}\n.lgd-legend{display:grid;gap:10px;align-content:center;min-width:0}\n.lgd-legend-row{display:grid;grid-template-columns:14px minmax(80px,max-content) max-content max-content;align-items:center;justify-content:start;gap:10px;min-width:0;padding:8px 0;border-bottom:1px solid var(--border);font-size:13px;font-weight:500;color:var(--muted)}\n.lgd-legend-row:last-child{border-bottom:0}\n.lgd-swatch{width:12px;height:12px;border-radius:3px}\n.lgd-legend-name{color:var(--ink);font-weight:650}\n.lgd-legend-value,.lgd-legend-percent{font-variant-numeric:tabular-nums;white-space:nowrap}\n.lgd-chart-callout{margin-top:16px;padding:10px 12px;border:1px solid var(--border);border-radius:6px;background:var(--tint);color:var(--muted);font-size:13px;font-weight:500;line-height:1.5}\n.lgd-safe-stack .lgd-chart-cluster{grid-template-columns:1fr;gap:16px}\n.lgd-safe-stack .lgd-legend{justify-content:center}\n.lgd-safe-stack .lgd-chart-callout{margin-top:20px}\n.lgd-table-card{min-width:0;padding:20px;border:1px solid var(--border);border-radius:8px;background:var(--surface);box-shadow:0 1px 2px rgba(15,23,42,.04)}\n.lgd-table-wrap{width:100%;max-width:100%;overflow-x:auto;border:1px solid var(--border);border-radius:6px;background:var(--surface)}\n.lgd-table{width:100%;min-width:680px;border-collapse:collapse;font-size:13px;font-variant-numeric:tabular-nums}\n.lgd-table th,.lgd-table td{padding:10px 12px;border-bottom:1px solid var(--border);text-align:right;white-space:nowrap}\n.lgd-table th:first-child,.lgd-table td:first-child{text-align:left}\n.lgd-table th{background:#172554;color:#fff;font-weight:700}\n.lgd-table tbody tr:hover{background:var(--tint)}\n.lgd-table tbody tr:last-child td{border-bottom:0}\n.lgd-table tbody tr[data-current=\"true\"]{background:#eff6ff;font-weight:700}\n.lgd-table-note{margin-top:16px;padding:10px 12px;border:1px solid var(--border);border-radius:6px;background:var(--tint);color:var(--muted);font-size:13px;font-weight:500;line-height:1.5}\n.lgd-safe-table-stack .lgd-table-note{margin-top:20px}\n.lgd-education{max-width:900px;min-width:0}\n.lgd-education h3{margin-top:24px}\n.lgd-education ul{margin:0 0 16px;padding-left:22px}\n.lgd-education li{margin-bottom:8px}\n.lgd-formula{padding:14px;border-left:4px solid var(--primary);border-radius:0 6px 6px 0;background:#eff6ff;color:#172554;font-weight:650;font-variant-numeric:tabular-nums}\n.lgd-visually-hidden{position:absolute!important;width:1px!important;height:1px!important;padding:0!important;margin:-1px!important;overflow:hidden!important;clip:rect(0,0,0,0)!important;white-space:nowrap!important;border:0!important}\n@container (max-width:899px){.lgd-calculator .lgd-workspace{grid-template-columns:1fr}.lgd-calculator .lgd-chart-cluster{grid-template-columns:1fr;gap:16px}.lgd-calculator .lgd-legend{justify-content:center}.lgd-calculator .lgd-chart-callout{margin-top:16px}}\n@container (max-width:639px){.lgd-calculator{padding:16px}.lgd-calculator .lgd-panel,.lgd-calculator .lgd-chart-card,.lgd-calculator .lgd-table-card{padding:16px}.lgd-calculator .lgd-result-grid{grid-template-columns:1fr}.lgd-calculator .lgd-legend-row{grid-template-columns:14px minmax(72px,max-content) max-content;gap:8px}.lgd-calculator .lgd-legend-percent{grid-column:2\/4;padding-left:0}.lgd-calculator .lgd-toolbar{align-items:stretch}.lgd-calculator .lgd-btn{flex:1 1 auto}.lgd-calculator .lgd-chart-callout{margin-top:16px}.lgd-calculator .lgd-table-note{margin-top:16px}}\n@container (max-width:359px){.lgd-calculator{padding:12px}.lgd-calculator .lgd-segmented{grid-template-columns:1fr}.lgd-calculator .lgd-btn{width:100%}.lgd-calculator .lgd-chart-callout{margin-top:12px}.lgd-calculator .lgd-table-note{margin-top:12px}}\n\u003c\/style\u003e\n\u003cdiv class=\"lgd-calculator\" data-calculator-root\u003e\n  \u003cheader class=\"lgd-header\"\u003e\n    \u003ch2\u003eLoss Given Default Calculator\u003c\/h2\u003e\n    \u003cp class=\"lgd-subtitle\"\u003eEstimate the dollar loss and recovery value on a credit exposure after default using either a recovery-rate or loss-severity assumption.\u003c\/p\u003e\n    \u003cdiv class=\"lgd-pills\" aria-label=\"Live calculator summary\"\u003e\n      \u003cspan class=\"lgd-pill\"\u003eExposure \u003cstrong data-pill=\"exposure\"\u003e$1,000,000.00\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"lgd-pill\"\u003eLGD rate \u003cstrong data-pill=\"severity\"\u003e20.00%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"lgd-pill\"\u003eRecovery \u003cstrong data-pill=\"recovery\"\u003e$800,000.00\u003c\/strong\u003e\u003c\/span\u003e\n    \u003c\/div\u003e\n  \u003c\/header\u003e\n\n  \u003cdiv class=\"lgd-toolbar\"\u003e\n    \u003cbutton class=\"lgd-btn lgd-btn-primary\" type=\"button\" data-action=\"download\"\u003e\n      \u003csvg viewbox=\"0 0 24 24\" fill=\"none\" aria-hidden=\"true\"\u003e\u003cpath d=\"M12 3v11m0 0 4-4m-4 4-4-4M5 17v3h14v-3\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n      \u003cspan\u003eDownload Excel\u003c\/span\u003e\n    \u003c\/button\u003e\n    \u003cbutton class=\"lgd-btn lgd-btn-secondary\" type=\"button\" data-action=\"reset\"\u003eReset\u003c\/button\u003e\n  \u003c\/div\u003e\n\n  \u003cdiv class=\"lgd-workspace\"\u003e\n    \u003csection class=\"lgd-panel\" aria-labelledby=\"lgd-inputs-title\"\u003e\n      \u003cdiv class=\"lgd-panel-title\"\u003e\n        \u003cdiv\u003e\n          \u003cdiv class=\"lgd-panel-kicker\"\u003eAssumptions\u003c\/div\u003e\n          \u003ch3 id=\"lgd-inputs-title\"\u003eCredit exposure inputs\u003c\/h3\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"lgd-fields\"\u003e\n        \u003cfieldset class=\"lgd-segmented\" data-fieldset=\"mode\"\u003e\n          \u003clegend\u003eRate entered\u003c\/legend\u003e\n          \u003clabel class=\"lgd-segment-option\" for=\"lgd-mode-recovery\"\u003e\n            \u003cinput id=\"lgd-mode-recovery\" name=\"lgd-mode\" type=\"radio\" value=\"recovery\" checked\u003e\n            \u003cspan\u003eRecovery rate\u003c\/span\u003e\n          \u003c\/label\u003e\n          \u003clabel class=\"lgd-segment-option\" for=\"lgd-mode-severity\"\u003e\n            \u003cinput id=\"lgd-mode-severity\" name=\"lgd-mode\" type=\"radio\" value=\"severity\"\u003e\n            \u003cspan\u003eLoss severity\u003c\/span\u003e\n          \u003c\/label\u003e\n        \u003c\/fieldset\u003e\n        \u003cdiv class=\"lgd-field\"\u003e\n          \u003clabel class=\"lgd-label\" for=\"lgd-rate\"\u003eRecovery rate\u003c\/label\u003e\n          \u003cinput id=\"lgd-rate\" type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" value=\"80.00%\" aria-describedby=\"lgd-rate-help lgd-rate-error\"\u003e\n          \u003cdiv class=\"lgd-help\" id=\"lgd-rate-help\"\u003eEnter a percentage from 0% to 100%.\u003c\/div\u003e\n          \u003cdiv class=\"lgd-error\" id=\"lgd-rate-error\" aria-live=\"polite\"\u003e\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"lgd-field\"\u003e\n          \u003clabel class=\"lgd-label\" for=\"lgd-exposure\"\u003eExpected exposure at default\u003c\/label\u003e\n          \u003cinput id=\"lgd-exposure\" type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" value=\"$1,000,000.00\" aria-describedby=\"lgd-exposure-help lgd-exposure-error\"\u003e\n          \u003cdiv class=\"lgd-help\" id=\"lgd-exposure-help\"\u003eUse the amount expected to remain outstanding when default occurs.\u003c\/div\u003e\n          \u003cdiv class=\"lgd-error\" id=\"lgd-exposure-error\" aria-live=\"polite\"\u003e\u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"lgd-panel\" aria-labelledby=\"lgd-results-title\"\u003e\n      \u003cdiv class=\"lgd-panel-title\"\u003e\n        \u003cdiv\u003e\n          \u003cdiv class=\"lgd-panel-kicker\"\u003eLive result\u003c\/div\u003e\n          \u003ch3 id=\"lgd-results-title\"\u003eEstimated default loss\u003c\/h3\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv data-results-valid\u003e\n        \u003cdiv class=\"lgd-result-hero\"\u003e\n          \u003cdiv class=\"lgd-result-label\"\u003eLoss given default\u003c\/div\u003e\n          \u003cdiv class=\"lgd-result-primary\" data-output=\"lgdAmount\"\u003e$200,000.00\u003c\/div\u003e\n          \u003cdiv class=\"lgd-result-sub\" data-output=\"primaryText\"\u003e20.00% of the expected exposure would not be recovered.\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"lgd-result-grid\"\u003e\n          \u003cdiv class=\"lgd-result-card\"\u003e\n            \u003cdiv class=\"lgd-result-card-label\"\u003eLoss severity\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-value\" data-output=\"severityRate\"\u003e20.00%\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-note\"\u003eLGD as a share of exposure\u003c\/div\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"lgd-result-card\"\u003e\n            \u003cdiv class=\"lgd-result-card-label\"\u003eRecovery amount\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-value\" data-output=\"recoveryAmount\"\u003e$800,000.00\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-note\" data-output=\"recoveryText\"\u003eBased on an 80.00% recovery rate\u003c\/div\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"lgd-result-card\"\u003e\n            \u003cdiv class=\"lgd-result-card-label\"\u003eRecovery rate\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-value\" data-output=\"recoveryRate\"\u003e80.00%\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-note\"\u003eShare of exposure recovered\u003c\/div\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"lgd-result-card\"\u003e\n            \u003cdiv class=\"lgd-result-card-label\"\u003eExposure check\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-value\" data-output=\"exposureCheck\"\u003e$1,000,000.00\u003c\/div\u003e\n            \u003cdiv class=\"lgd-result-card-note\"\u003eRecovery plus LGD\u003c\/div\u003e\n          \u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"lgd-invalid-state\" data-results-invalid hidden\u003eEnter a valid rate and exposure to calculate loss given default.\u003c\/div\u003e\n      \u003cdiv class=\"lgd-visually-hidden\" aria-live=\"polite\" data-live-summary\u003e\u003c\/div\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\n  \u003csection class=\"lgd-section\" aria-labelledby=\"lgd-breakdown-title\"\u003e\n    \u003cdiv class=\"lgd-section-head\"\u003e\n      \u003ch3 id=\"lgd-breakdown-title\"\u003eExposure breakdown\u003c\/h3\u003e\n      \u003cp\u003eSee how the expected exposure divides between recovered value and loss after default.\u003c\/p\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"lgd-chart-card\" data-chart-card\u003e\n      \u003cdiv class=\"lgd-chart-cluster\"\u003e\n        \u003cdiv class=\"lgd-chart-visual\"\u003e\n          \u003cdiv class=\"lgd-chart-total\"\u003eExpected exposure\u003cstrong data-chart-total\u003e$1,000,000.00\u003c\/strong\u003e\n\u003c\/div\u003e\n          \u003csvg class=\"lgd-chart-svg\" data-chart-svg viewbox=\"0 0 320 320\" role=\"img\" aria-labelledby=\"lgd-chart-title lgd-chart-desc\"\u003e\n            \u003ctitle id=\"lgd-chart-title\"\u003eExpected exposure allocation\u003c\/title\u003e\n            \u003cdesc id=\"lgd-chart-desc\"\u003eRecovered amount and loss given default shown as portions of the expected exposure.\u003c\/desc\u003e\n            \u003cg data-chart-segments transform=\"rotate(-90 160 160)\"\u003e\u003c\/g\u003e\n            \u003ccircle cx=\"160\" cy=\"160\" r=\"91\" fill=\"#ffffff\"\u003e\u003c\/circle\u003e\n            \u003ctext data-chart-center-label x=\"160\" y=\"151\" text-anchor=\"middle\" fill=\"#475569\" font-size=\"14\" font-weight=\"600\"\u003eLGD\u003c\/text\u003e\n            \u003ctext data-chart-center-value x=\"160\" y=\"178\" text-anchor=\"middle\" fill=\"#0f172a\" font-size=\"24\" font-weight=\"700\"\u003e$200K\u003c\/text\u003e\n          \u003c\/svg\u003e\n          \u003cdiv class=\"lgd-chart-empty\" data-chart-empty aria-hidden=\"true\"\u003eEnter values above to see the breakdown.\u003c\/div\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"lgd-legend\" data-chart-legend aria-label=\"Exposure breakdown legend\"\u003e\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cp class=\"lgd-visually-hidden\" data-chart-summary\u003e\u003c\/p\u003e\n      \u003cdiv class=\"lgd-chart-callout\" data-chart-caption\u003eAt the current assumptions, every $1.00 of exposure produces $0.20 of loss and $0.80 of recovery.\u003c\/div\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"lgd-section\" aria-labelledby=\"lgd-scenarios-title\"\u003e\n    \u003cdiv class=\"lgd-section-head\"\u003e\n      \u003ch3 id=\"lgd-scenarios-title\"\u003eRecovery sensitivity\u003c\/h3\u003e\n      \u003cp\u003eCompare the baseline with nearby recovery-rate assumptions while holding exposure constant.\u003c\/p\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"lgd-table-card\" data-table-card\u003e\n      \u003cdiv class=\"lgd-table-wrap\" data-table-wrap\u003e\n        \u003ctable class=\"lgd-table\"\u003e\n          \u003cthead\u003e\n            \u003ctr\u003e\n              \u003cth scope=\"col\"\u003eScenario\u003c\/th\u003e\n              \u003cth scope=\"col\"\u003eRecovery rate\u003c\/th\u003e\n              \u003cth scope=\"col\"\u003eLoss severity\u003c\/th\u003e\n              \u003cth scope=\"col\"\u003eRecovery amount\u003c\/th\u003e\n              \u003cth scope=\"col\"\u003eLGD amount\u003c\/th\u003e\n              \u003cth scope=\"col\"\u003eChange vs. baseline\u003c\/th\u003e\n            \u003c\/tr\u003e\n          \u003c\/thead\u003e\n          \u003ctbody data-scenario-rows\u003e\u003c\/tbody\u003e\n        \u003c\/table\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"lgd-table-note\" data-table-note\u003eRecovery assumptions are capped between 0% and 100%. The highlighted row is the current baseline.\u003c\/div\u003e\n    \u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"lgd-section lgd-education\" aria-labelledby=\"lgd-education-title\"\u003e\n    \u003ch3 id=\"lgd-education-title\"\u003eHow to use and interpret loss given default\u003c\/h3\u003e\n    \u003cp\u003eLoss given default, usually abbreviated LGD, estimates the portion of a credit exposure that is not recovered after a borrower defaults. This calculator converts a recovery assumption into both a percentage loss and a dollar loss. It is useful for loan analysis, credit portfolio monitoring, allowance modeling, stress testing, and comparing the severity of different secured or unsecured exposures. LGD does not estimate whether default will occur; it estimates the financial impact conditional on default.\u003c\/p\u003e\n\n    \u003ch3\u003eWhat each input means\u003c\/h3\u003e\n    \u003cp\u003e\u003cstrong\u003eRate entered\u003c\/strong\u003e lets you choose the form of the assumption you already have. Select \u003cstrong\u003eRecovery rate\u003c\/strong\u003e when your estimate describes the share of exposure expected to be collected through collateral, restructuring, guarantees, or bankruptcy proceeds. Select \u003cstrong\u003eLoss severity\u003c\/strong\u003e when your estimate directly states the share expected to be lost. Switching between the two converts the current rate because recovery rate and loss severity are complements.\u003c\/p\u003e\n    \u003cp\u003e\u003cstrong\u003eRecovery rate or loss severity\u003c\/strong\u003e is required and must be between 0% and 100%. A higher recovery rate lowers LGD dollar-for-dollar as a percentage of exposure. A higher loss severity raises LGD. For example, an 80% recovery rate equals 20% loss severity. Common mistakes include entering 0.80 when the field is intended to mean 0.80%, using a recovery estimate before liquidation costs, or applying a rate from a different collateral class without adjustment.\u003c\/p\u003e\n    \u003cp\u003e\u003cstrong\u003eExpected exposure at default\u003c\/strong\u003e is the amount expected to be outstanding when default happens. For a term loan, it may resemble projected principal plus accrued amounts. For revolving credit, it can include expected additional drawings before default. The input is required and cannot be negative. Increasing exposure increases recovery and LGD amounts proportionally but does not change the recovery or loss percentages.\u003c\/p\u003e\n\n    \u003ch3\u003eHow the model works\u003c\/h3\u003e\n    \u003cdiv class=\"lgd-formula\"\u003eLoss severity = 100% − recovery rate\u003cbr\u003eLGD amount = expected exposure × loss severity\u003cbr\u003eRecovery amount = expected exposure × recovery rate\u003c\/div\u003e\n    \u003cp\u003eThe model assumes the entered rate already incorporates the expected timing and net value of recoveries. In institutional credit models, recovery cash flows may be discounted and reduced for collection, legal, servicing, and asset-disposal costs. The \u003ca href=\"https:\/\/www.bis.org\/basel_framework\/chapter\/CRE\/36.htm\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eBasel Framework\u003c\/a\u003e discusses LGD within credit-risk capital rules, while the \u003ca href=\"https:\/\/www.ifrs.org\/issued-standards\/list-of-standards\/ifrs-9-financial-instruments\/\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eIFRS 9 overview\u003c\/a\u003e places credit-loss measurement in a broader accounting context.\u003c\/p\u003e\n\n    \u003ch3\u003eHow to read the results\u003c\/h3\u003e\n    \u003cp\u003e\u003cstrong\u003eLoss given default\u003c\/strong\u003e is the primary dollar result. A zero value means the assumptions imply full recovery; a value equal to exposure means no recovery. A negative LGD is not permitted because neither rate nor exposure may be negative. A high LGD can indicate weak collateral coverage, costly enforcement, junior priority, or low expected resale proceeds, but it does not by itself indicate a high probability of default.\u003c\/p\u003e\n    \u003cp\u003e\u003cstrong\u003eLoss severity\u003c\/strong\u003e is LGD expressed as a percentage of exposure. It makes exposures of different sizes easier to compare. \u003cstrong\u003eRecovery amount\u003c\/strong\u003e is the expected portion collected after default. \u003cstrong\u003eRecovery rate\u003c\/strong\u003e expresses that recovery as a percentage. \u003cstrong\u003eExposure check\u003c\/strong\u003e confirms that recovery amount plus LGD equals total exposure, which is an important cross-foot for detecting inconsistent assumptions.\u003c\/p\u003e\n    \u003cp\u003eThe donut chart uses the same model values as the result cards and shows the relative shares recovered and lost. The sensitivity table changes only the recovery-rate assumption. Moving down the table toward higher recovery reduces loss severity and LGD. The change-versus-baseline column isolates the dollar impact of each nearby assumption, making it easier to see how much model risk is concentrated in the recovery estimate.\u003c\/p\u003e\n\n    \u003ch3\u003ePractical assumptions and common tradeoffs\u003c\/h3\u003e\n    \u003cul\u003e\n      \u003cli\u003eUse exposure and recovery assumptions from the same valuation date and scenario. Mixing a stressed exposure with an unstressed recovery rate can distort the result.\u003c\/li\u003e\n      \u003cli\u003eConsider lien priority, collateral type, jurisdiction, workout duration, guarantor strength, and direct recovery costs. Secured senior claims may recover differently from unsecured or subordinated claims.\u003c\/li\u003e\n      \u003cli\u003eDo not confuse LGD with expected credit loss. A simplified expected-loss framework also requires probability of default and, often, the timing of exposure and recoveries.\u003c\/li\u003e\n      \u003cli\u003eStress the recovery rate rather than relying on a single point estimate. The sensitivity table provides a compact first step, but a full model may use separate economic, collateral-price, and cure-rate scenarios.\u003c\/li\u003e\n    \u003c\/ul\u003e\n    \u003cp\u003eFor governance, document how assumptions were selected, how often they are refreshed, and which realized recoveries are used for back-testing. The Federal Reserve's \u003ca href=\"https:\/\/www.federalreserve.gov\/supervisionreg\/srletters\/sr1107.htm\" target=\"_blank\" rel=\"noopener noreferrer\"\u003emodel risk management guidance\u003c\/a\u003e emphasizes validation, controls, and ongoing monitoring. The \u003ca href=\"https:\/\/www.fdic.gov\/regulations\/safety\/manual\/section3-1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eFDIC credit-risk manual\u003c\/a\u003e provides additional supervisory context for credit administration. This calculator is an educational estimation tool and not personalized accounting, regulatory, legal, or investment advice.\u003c\/p\u003e\n  \u003c\/section\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49909486944499,"sku":"lgd","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/lgd.webp?v=1783935509","url":"https:\/\/financialmodelslab.com\/products\/lgd","provider":"Financial Models Lab","version":"1.0","type":"link"}