Calculate the percentage of loans or accounts within a portfolio that are past due. This tool computes both the volume-based (count) delinquency rate and the value-based (dollar amount) delinquency rate.
Please enter valid positive numbers. Delinquent amounts cannot exceed totals.
Calculation Results
Rate by Volume (Count)
0.00%
Based on # of accounts
Rate by Value (Dollar)
0.00%
Based on portfolio balance
About Delinquency Rate Calculations
The Delinquency Rate is a critical financial metric used by banks, credit unions, and lending institutions to assess the quality of their loan portfolios. It represents the percentage of loans that are past due (usually defined as 30, 60, or 90 days late) relative to the total portfolio.
How It Is Calculated
There are two primary ways to calculate delinquency, and they often tell different stories about risk:
1. Volume-Based Calculation (By Count)
This formula looks strictly at the number of borrowers who are late on payments, regardless of how much they owe.
Formula: (Number of Delinquent Loans / Total Number of Loans) × 100
2. Value-Based Calculation (By Balance)
This formula weighs the calculation by the dollar amount at risk. This is often more important for liquidity analysis because a default on a large loan hurts more than a default on a small one.
Consider a hypothetical auto lender with the following portfolio data:
Total Loans: 2,000 accounts
Delinquent Loans: 100 accounts
Total Portfolio Value: $50,000,000
Delinquent Balance: $3,500,000
Resulting Rates:
By Count: (100 / 2,000) = 5.00%
By Value: ($3,500,000 / $50,000,000) = 7.00%
In this example, the rate by value (7%) is higher than the rate by count (5%). This suggests that borrowers with larger loan balances are more likely to be delinquent than those with smaller balances, indicating a higher risk profile for the lender.
Why Monitoring Delinquency Matters
Risk Management: Rising delinquency rates act as an early warning signal for potential defaults and write-offs.
Cash Flow Forecasting: Lenders rely on repayments to fund new loans; high delinquency disrupts this cycle.
Regulatory Compliance: Banks are required to maintain specific capital reserves based on the risk level of their portfolio.
function calculateDelinquency() {
// 1. Get Input Elements
var totalLoansInput = document.getElementById('totalLoans');
var delinquentLoansInput = document.getElementById('delinquentLoans');
var totalValueInput = document.getElementById('totalValue');
var delinquentValueInput = document.getElementById('delinquentValue');
var errorMsg = document.getElementById('errorMessage');
var resultSection = document.getElementById('resultSection');
// 2. Parse Values
var totalLoans = parseFloat(totalLoansInput.value);
var delinquentLoans = parseFloat(delinquentLoansInput.value);
var totalValue = parseFloat(totalValueInput.value);
var delinquentValue = parseFloat(delinquentValueInput.value);
// 3. Validation Logic
var isValid = true;
errorMsg.style.display = 'none';
resultSection.style.display = 'none';
// Check for NaN or negatives
if (isNaN(totalLoans) || totalLoans <= 0) isValid = false;
if (isNaN(delinquentLoans) || delinquentLoans < 0) isValid = false;
if (isNaN(totalValue) || totalValue <= 0) isValid = false;
if (isNaN(delinquentValue) || delinquentValue totalLoans) isValid = false;
if (delinquentValue > totalValue) isValid = false;
if (!isValid) {
errorMsg.style.display = 'block';
return;
}
// 4. Calculations
var rateByCount = (delinquentLoans / totalLoans) * 100;
var rateByValue = (delinquentValue / totalValue) * 100;
// 5. Update UI
document.getElementById('resRateCount').innerHTML = rateByCount.toFixed(2) + '%';
document.getElementById('resRateValue').innerHTML = rateByValue.toFixed(2) + '%';
// Generate summary text
var summaryText = "Analysis: ";
if (rateByValue > rateByCount) {
summaryText += "Your portfolio has a higher delinquency rate by value (" + rateByValue.toFixed(2) + "%) than by volume. This indicates that higher-balance accounts are falling behind at a faster rate than smaller accounts.";
} else if (rateByCount > rateByValue) {
summaryText += "Your portfolio has a higher delinquency rate by volume (" + rateByCount.toFixed(2) + "%) than by value. This indicates that delinquency is driven primarily by smaller-balance accounts.";
} else {
summaryText += "Your delinquency rates by volume and value are identical.";
}
document.getElementById('resSummary').innerHTML = summaryText;
resultSection.style.display = 'block';
}