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Non Performing Asset Ratio Calculator

Work out non performing asset ratio instantly with clear inputs, formula shown and shareable results.

About Non Performing Asset Ratio Calculator

The gross ratio shows how much of the book has stopped performing; the net ratio shows what is left unprovided and therefore still at risk to capital. The gap between the two is the provision coverage.

Formula

Impairment ratios

Gross = gross NPA / gross advances; net = (gross NPA - provisions) / (advances - provisions)

Worked example

With the default values below, Non Performing Asset Ratio Calculator returns Gross Impaired Loan Ratio of 7.5556%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Gross Non-Performing Assetsminimum 0
68,000,000
Gross Advancesminimum 0
900,000,000
Provisions Heldminimum 0
41,000,000

Results

Gross Impaired Loan Ratio
7.5556%
Net Impaired Loan Ratio
3.1432%
Net Impaired Assets
$27,000,000.00
Provision Coverage
60.294%

Step by step

  1. 1Values used
  2. 2Impairment ratios
  3. 3Gross Impaired Loan Ratio= 7.5556
  4. 4Net Impaired Loan Ratio= 3.1432
  5. 5Net Impaired Assets= 27,000,000.00
  6. 6Provision Coverage= 60.294

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

Which ratio matters more?

The net ratio, because it measures the unprovided exposure that would hit capital if the loans were written off.

When is a loan classified as non-performing?

Typically after 90 days past due on principal or interest, with earlier triggers for identified stress.

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