Loan portfolio at risk calculator
Enter your gross loan portfolio and how much principal sits in each overdue bucket. Get PAR 1, PAR 30, PAR 60 and PAR 90, the provision required and your collection rate, with every formula shown underneath.
Short answer: PAR 30 is the outstanding principal of all loans with an instalment more than 30 days overdue, divided by the gross loan portfolio, times 100. A lender with 1,000,000 outstanding and 40,000 of principal in loans more than 30 days late has a PAR 30 of 4.0%. Your own figures below.
Your loan book
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PAR 30: 4.0%of the gross loan portfolio is in loans more than 30 days overdue
- Provision required at the rates enteredUSD 29,950
- Collection rate this month92.0%
Reading: your PAR 30 of 4.0% is under the 5 percent level commonly cited as comfortable for microfinance portfolios.
This is arithmetic on the figures you entered, not financial or legal advice.
The formulas this calculator uses
Every output above is plain arithmetic on your own figures. Nothing is estimated and there is no hidden adjustment. In the formulas, B1 to B5 are the five overdue buckets from 1 to 30 days up to over 180 days, and GLP is the gross loan portfolio.
| Measure | Formula | What it tells you |
|---|---|---|
| PAR 1 | (B1 + B2 + B3 + B4 + B5) ÷ GLP × 100 | Share of the book in any loan that is late at all |
| PAR 30 | (B2 + B3 + B4 + B5) ÷ GLP × 100 | The most widely reported portfolio quality measure |
| PAR 60 | (B3 + B4 + B5) ÷ GLP × 100 | Arrears that have survived two collection cycles |
| PAR 90 | (B4 + B5) ÷ GLP × 100 | Loans where recovery is usually hardest |
| Provision required | (GLP minus all buckets) × rate + each bucket × its rate | The loss allowance your chosen rates imply |
| Collection rate | Repayments collected ÷ repayments due this month × 100 | How much of what fell due actually came in |
Three details change the answer more than people expect. First, each loan counts once, in the bucket of its oldest overdue instalment. Second, the whole remaining principal of a late loan goes in the bucket, not just the missed instalment, because the full balance is what is exposed. Third, widely used microfinance reporting guidance treats rescheduled and restructured loans as at risk too, so a loan that was rescheduled to avoid showing as late should not quietly move back to current.
How to read your numbers
A PAR 30 under about 5 percent is commonly cited as a comfortable level for microfinance portfolios, and above 10 percent is commonly cited as a cause for concern, largely because most microloans carry little bankable collateral. Treat both as rules of thumb. A secured book, a seasonal agricultural portfolio or a lender that has just doubled its disbursements can all look different on the same day.
The gap between PAR 1 and PAR 30 is where collections still have most leverage. Whatever is not collected in the 1 to 30 day bucket this month becomes next month's PAR 30. Watching that migration week by week tells you far more than a single month end figure.
Be careful with a fast growing book. New loans add to the portfolio before they have had time to fall behind, which pulls every PAR figure down. If disbursements are climbing quickly, compare PAR against the portfolio of a few months ago as well as today's.
Provisioning: example rates, your rules
The rates in the calculator are examples, set so the tool returns a working figure. The classification bands and provisioning percentages that actually apply to you are set by the relevant regulator in your country and by the accounting standards you report under. Meeting them is the lender's obligation, and your accountant or auditor is the right person to confirm them. What software can do is apply your approved rates to every loan automatically and produce the ageing and provisioning reports those rules ask for, on any date, without a spreadsheet.
Stop building this report by hand
If you filled in the buckets above from a spreadsheet, you already know the problem: the figure is only as good as the last time someone updated every loan. A loan management system ages each loan from its repayment schedule, so PAR, provisions and collections are ready whenever a manager, board member or auditor asks. The Growth Informer Loan and SACCO Management System, the loan, savings, shares and SACCO system we configure and build for each lender, is designed to report PAR 1, PAR 30 and PAR 90 by branch, officer and product.
We will be straight with you. We have not shipped a production loan system for a client yet, and we will not pretend otherwise. What we have built and run is financial software that moves real money: Moyo Pay, our own dual currency wallet on a double entry ledger with Mobile Money and USSD, and Growth Informer Business, our own live cloud POS, inventory and business platform. We also built Karibu, a travel SaaS. Across all our work that is 37 live website and app builds you can open on our portfolio page.
You get a fixed quote before work starts, pay on a 50/25/25 plan, and own the source code and your data outright.
Common questions
Add up the outstanding principal of every loan that has at least one instalment overdue by more than the chosen number of days, divide by the gross loan portfolio, and multiply by 100. PAR 30 uses loans more than 30 days overdue and PAR 90 uses loans more than 90 days overdue. The whole remaining balance of each late loan counts, not only the missed instalment, because that full balance is what is at risk if the borrower stops paying.
A PAR 30 under about 5 percent is commonly cited as a comfortable level for microfinance portfolios, and a PAR 30 above 10 percent is commonly cited as a cause for concern, mainly because most microloans have little bankable collateral behind them. These are rules of thumb, not rules. Secured lending, seasonal agricultural loans and a young, fast growing loan book can all read differently, so the trend from month to month usually tells you more than a single figure.
An arrears rate divides only the overdue amounts by the portfolio. PAR divides the full outstanding balance of the late loans by the portfolio. If a borrower owes 1,000 and has missed one instalment of 100, the arrears rate counts 100 while PAR counts 1,000. That is why an arrears rate can look small while a large share of the loan book is already in trouble, and why PAR is the more widely used measure of portfolio quality.
No. They are example rates so the calculator shows a working figure, and you should replace them with the rates that apply to you. Loan classification and provisioning rules are set by the relevant regulator in your country and by the accounting standards you report under, and meeting them is the lender's obligation. Your accountant or auditor can confirm the right rates. A loan management system can then produce the ageing and provisioning reports those rules call for.
No. The calculator runs entirely in your browser, the figures you enter are not transmitted, and no email is needed to use it. If you choose to message us on WhatsApp afterwards, your results are written into the message so you do not have to retype them, and you can edit or delete any of it before you press send.
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Send us your loan products, roughly how many active loans you run and how you report today. We will scope a loan management system that produces PAR, provisions and collections on demand, and give you a fixed quote before any work starts.
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