Expected Credit Loss Calculator
Build an ECL provision matrix for trade receivables the way Ind AS 109 and IFRS 9 intend — a loss rate for every ageing bucket, a forward-looking macro overlay on top, and the Stage 1 / Stage 2 / Stage 3 split that decides how much you carry. Companion to the receivables writing.
Ageing & loss matrix
Enter the receivable balance in each bucket and its historical loss rate. Pick a scenario to set the overlay.
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The provision matrix
Effective loss rate applies the overlay to your history.
| Bucket | Balance | Eff. rate | ECL |
|---|
How this is calculated
This is the simplified approach that Ind AS 109 and IFRS 9 permit for trade receivables — a provision matrix, not a full PD × LGD model. For each ageing bucket, ECL = Balance × Effective loss rate, and the effective rate is your historical rate × forward-looking overlay. The total provision is the sum across buckets.
Historical loss rates come from your own roll-rate experience: of the rupees that sat in this bucket, what share was never collected. Older buckets carry higher rates because ageing is the single best free predictor of non-payment.
The forward-looking overlay is what makes this an expected loss rather than an incurred one. History tells you the past; the overlay adjusts it for the outlook — a weakening sector, a stretched anchor buyer, a rising-rate cycle. Regulators expect the adjustment to be reasoned and documented, not reverse-engineered to hit a number.
Staging follows significant increase in credit risk. Current receivables sit in Stage 1 and carry a 12-month loss. Once past due beyond the staging trigger — here, anything overdue — credit risk has increased significantly, so the balance moves to Stage 2 and carries a lifetime loss. Balances that are credit-impaired, taken here as 90+ days past due, are Stage 3. The provision is the same arithmetic; staging governs disclosure and the loss horizon.
Illustrative model for educational use. A production ECL model would derive rates from cohort roll-rates, weight multiple macro scenarios probabilistically, separate cure rates and recoveries, and apply entity-specific staging policy. Not accounting, audit or regulatory advice.