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Exposure At Default Calculator

Work out exposure at default instantly with clear inputs, formula shown and shareable results.

About Exposure At Default Calculator

Exposure at default exceeds the current drawn balance because distressed borrowers draw down available limits before failing. The credit conversion factor captures that expected additional drawdown, plus accrued but unpaid interest.

Formula

Exposure at default

EAD = drawn × (1 + accruals) + undrawn × credit conversion factor

Worked example

With the default values below, Exposure At Default Calculator returns Exposure At Default of $38,600,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Currently Drawnminimum 0
30,000,000
Undrawn Commitmentminimum 0
20,000,000
Credit Conversion Factoraccepts 0–100 %
40 %
Accrued Interest And Feesaccepts 0–20 %
2 %

Results

Exposure At Default
$38,600,000.00
Expected Additional Drawdown
$8,000,000.00
Accrued Interest And Fees
$600,000.00
Implied Utilisation Of The Limit
77.200%

Step by step

  1. 1Values used
  2. 2Exposure at default
  3. 3Exposure At Default= 38,600,000.00
  4. 4Expected Additional Drawdown= 8,000,000.00
  5. 5Accrued Interest And Fees= 600,000.00
  6. 6Implied Utilisation Of The Limit= 77.200

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

Why does undrawn commitment matter?

Because a borrower heading for default typically uses every facility available, converting commitment into real exposure.

What conversion factor is used?

It depends on facility type and cancellability — uncommitted lines attract low factors, committed revolvers much higher ones.

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