Work out roll rate analysis instantly with clear inputs, formula shown and shareable results.
Roll rate analysis chains the probability of moving from one delinquency bucket to the next. Multiplying the rates gives the share of current balance expected to reach ninety days, which is the basis for forward-looking provisioning.
Cumulative roll rate
Cumulative = r(0→30) × r(30→60) × r(60→90)
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.
Because self-curing borrowers cure early. Those still delinquent at sixty days are far more likely to continue deteriorating.
They convert current delinquency into an expected loss estimate ahead of formal impairment.