# How do i calculate the Current Expected Credit Loss Model (CECL)

how do i calculate the CECL? The equation for the Expected Loss Model (ECL) is:

$$EL=PD*EAD*LGD$$ (Lifetime ECL for Stage 2 & 3)

I would like to do a comparative calculation for my bachelor thesis. I have already calculated all impairments for the incurred and expected loss model. (Table is in German: Risikovorsorge = Loan loss provision; Zeitpunkt = Time)

Can someone show me how to calculate the CECL?

Nominal amount: 1.000.000€

Duration: 4 Years

Interest rate: 5%

• You may find the references here quant.stackexchange.com/questions/59233/… helpful – Dimitri Vulis Dec 12 '20 at 16:11
• hey, thank you for the literature tips! They have definitely brought me further. Unfortunately, I still haven't quite solved the problem and need help with the calculation in Excel. – Dennis Khavkin Dec 13 '20 at 8:24