Annualized Loss Expectancy
Free Annualized Loss Expectancy calculator with clear step-by-step results.
About Annualized Loss Expectancy
Annualized loss expectancy is the expected yearly loss from a threat.
Formula
Formula
ALE = ARO × SLE
Worked example
With the default values below, Annualized Loss Expectancy returns Annualized Loss Expectancy of $20,000.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Annualized rate of occurrenceminimum 0
- 2
- Single loss expectancyminimum 0 $
- 10,000 $
Results
- Annualized Loss Expectancy
- $20,000.00
- Single Loss Expectancy
- $10,000.00
- ARO Used
- 2.00
Step by step
- 1Values used
- 2Formula
- 3Annualized Loss Expectancy= $20,000
- 4Single Loss Expectancy= $10,000
- 5ARO Used= 2.00
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Annualized loss expectancy is the expected yearly loss from a threat.
Why does this matter?
Compare ALE against control costs to justify spending.
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