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.

  1. First, determine the single loss expectancy. 
  2. Next, determine the annualized rate of occurrence. 
  3. Next, gather the formula from above = ALE = SLE * ARO.
  4. Finally, calculate the Annual Loss Expectancy.
  5. 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