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Risk Weighted Assets Calculator

Work out risk weighted assets instantly with clear inputs, formula shown and shareable results.

About Risk Weighted Assets Calculator

Standardised risk weights scale each exposure by its loss risk: zero for own-currency sovereign debt, 35% for residential mortgages, 75% for retail and 100% for unrated corporates. The weighted total drives the capital requirement.

Formula

Risk weighted assets

RWA = Σ exposure × risk weight; capital = RWA × minimum ratio

Worked example

With the default values below, Risk Weighted Assets Calculator returns Total Risk Weighted Assets of $467,500,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sovereign Exposureminimum 0
200,000,000
Residential Mortgage Exposureminimum 0
300,000,000
Other Retail Exposureminimum 0
150,000,000
Corporate Exposureminimum 0
250,000,000

Results

Total Risk Weighted Assets
$467,500,000.00
Total Exposure
$900,000,000.00
Average Risk Weight
51.944%
Capital Required At An 11.5% Ratio
$53,762,500.00

Step by step

  1. 1Values used
  2. 2Risk weighted assets
  3. 3Total Risk Weighted Assets= 467,500,000.00
  4. 4Total Exposure= 900,000,000.00
  5. 5Average Risk Weight= 51.944
  6. 6Capital Required At An 11.5% Ratio= 53,762,500.00

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, fees or charges 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 is sovereign debt weighted at zero?

Because a government's own-currency obligations are treated as risk-free under the standardised approach — a much debated assumption.

Can banks use their own weights?

Large banks may use internal models subject to approval and output floors that limit how far they can diverge.

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