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Leverage Ratio (Basel) Calculator

Work out leverage ratio (basel) instantly with clear inputs, formula shown and shareable results.

About Leverage Ratio (Basel) Calculator

The leverage ratio is a non-risk-based backstop: Tier 1 capital over total exposure including off-balance-sheet items. It stops a bank building enormous low-risk-weighted balance sheets on thin capital.

Formula

Leverage ratio

Ratio = Tier 1 capital / total exposure measure; maximum exposure = capital / minimum ratio

Worked example

With the default values below, Leverage Ratio (Basel) Calculator returns Leverage Ratio of 3.7500%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Tier 1 Capitalminimum 0
90,000,000
Total Exposure Measureminimum 0
2,400,000,000
Minimum Leverage Ratioaccepts 1–10 %
3 %

Results

Leverage Ratio
3.7500%
Capital Above The Minimum
$18,000,000.00
Maximum Exposure Supportable
$3,000,000,000.00
Exposure As A Multiple Of Capital
26.67

Step by step

  1. 1Values used
  2. 2Leverage ratio
  3. 3Leverage Ratio= 3.7500
  4. 4Capital Above The Minimum= 18,000,000.00
  5. 5Maximum Exposure Supportable= 3,000,000,000.00
  6. 6Exposure As A Multiple Of Capital= 26.67

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 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 is a non-risk-based measure needed?

Because risk weights can be gamed or simply wrong. The leverage ratio caps total size regardless of modelled risk.

What is in the exposure measure?

On-balance-sheet assets plus derivative exposures, securities financing and off-balance-sheet commitments.

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