NPL Non Performing Ratio Calculator
Audit actual loan-ledger performing/nonperforming/unknown classifications with conditional known-only and all-observed denominators; unknown loans are not silently treated as performing and no delinquency/default classification rule is invented.
Description
Nonperforming loan (NPL) ratios need explicit known and unknown loan classifications.
Nonperforming loan (NPL) ratios need explicit known and unknown loan classifications. Unknown balances change the denominator without becoming performing balances.1
The returned values include Observed nonperforming balance minor, Unknown classification balance minor, Known classification npl percent, Known npl share of all observed loans percent, Known classification evidence available. The How section below explains the calculation, input rules and interpretation.
When to use NPL Non Performing Ratio Calculator
Use NPL Non Performing Ratio Calculator when you need to evaluate the supplied records under the calculation and evidence rules below. No delinquency/default classification, missing-evidence imputation or future loss prediction is supplied.
Prepare observed financial records and verified caller terms. Use one currency for integer minor-unit money and preserve leading zeros in identifier text. One basis point is 0.01 percentage points. Resolve dates, local clocks, counting rules and evidence flags as specified.
How to use NPL Non Performing Ratio Calculator and understand its results
- Prepare observed financial records and verified caller terms. Use one currency for integer minor-unit money and preserve leading zeros in identifier text. One basis point is 0.01 percentage points. Resolve dates, local clocks, counting rules and evidence flags as specified.
- Enter observedLoanBalancesMinor, performingZeroNonperformingOneUnknownTwoCodes using the field table and calculation rules, then run the tool.
- Read observedNonperformingBalanceMinor, unknownClassificationBalanceMinor, knownClassificationNplPercent, knownNplShareOfAllObservedLoansPercent, knownClassificationEvidenceAvailable. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| observedLoanBalancesMinor | Observed loan balances minor | list of number | Required |
| performingZeroNonperformingOneUnknownTwoCodes | Performing zero nonperforming one unknown two codes | list of number | Required |
Enter aligned nonempty nonnegative safe-integer balances and integer codes 0 performing, 1 nonperforming, 2 unknown. Require positive total. Return nonperforming and unknown balances, known-only percent, all-observed known-NPL share and known-evidence flag. If known balance is zero, known-only percent is −1 and the flag is false.
knownNPL%=100×NPL/(total−unknown); allObservedShare%=100×NPL/total Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| observedNonperformingBalanceMinor | Observed nonperforming balance minor | number |
| unknownClassificationBalanceMinor | Unknown classification balance minor | number |
| knownClassificationNplPercent | Known classification npl percent | number |
| knownNplShareOfAllObservedLoansPercent | Known npl share of all observed loans percent | number |
| knownClassificationEvidenceAvailable | Known classification evidence available | boolean |
{
"input": {
"observedLoanBalancesMinor": [
100,
200,
300
],
"performingZeroNonperformingOneUnknownTwoCodes": [
1,
0,
2
]
},
"output": {
"observedNonperformingBalanceMinor": 100,
"unknownClassificationBalanceMinor": 300,
"knownClassificationNplPercent": 33.333333333333336,
"knownNplShareOfAllObservedLoansPercent": 16.666666666666668,
"knownClassificationEvidenceAvailable": true
}
}Limitations and assumptions
No delinquency/default classification, missing-evidence imputation or future loss prediction is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries; string lists to 128 strings of at most 128 characters each. The rules above may impose smaller limits. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Deposit Mix Core vs Hot Percent Calculator: Deposit mix separates caller-classified core, hot and unknown balances. Unknown deposits must not silently become stable funding. For a complementary task, use CET1 Capital Adequacy Ratio Calculator: CET1 scenarios deduct specified adjustments before dividing by supplied RWA. Capital and policy margin can remain negative.
References
-
NPL Non Performing Ratio Calculator — tool.io
Similar or alternative tools
- Deposit Mix Core vs Hot Percent Calculator
Deposit mix separates caller-classified core, hot and unknown balances. Unknown deposits must not silently become stable funding.
- CET1 Capital Adequacy Ratio Calculator
CET1 scenarios deduct specified adjustments before dividing by supplied RWA. Capital and policy margin can remain negative.