Enter the single loss expectancy and the annualized rate of occurrence into the Calculator. The calculator will evaluate the Annual Loss Expectancy.

## Annual Loss Expectancy Formula

ALE = SLE * ARO

Variables:

- ALE is the Annual Loss Expectancy ()
- SLE is the single loss expectancy
- ARO is the annualized rate of occurrence

To calculate Annual Loss Expectancy, multiply the single loss expectancy by the annualized rate of occurence.

## How to Calculate Annual Loss Expectancy?

The following steps outline how to calculate the Annual Loss Expectancy.

- First, determine the single loss expectancy.
- Next, determine the annualized rate of occurrence.
- Next, gather the formula from above = ALE = SLE * ARO.
- Finally, calculate the Annual Loss Expectancy.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

single loss expectancy = 30

annualized rate of occurrence = 0.75