Enter the default point ($), the market value of assets ($), and the asset volatility (%) into the EDF Calculator. The calculator will evaluate the EDF. 

EDF Formula

The following formula is used to calculate the EDF. 

EDF = DP / MVA * AV

Variables:

  • EDF is the EDF (%)
  • DP is the default point ($) 
  • MVA is the market value of assets ($) 
  • AV is the asset volatility (%) 

How to Calculate EDF?

The following steps outline how to calculate the EDF.

  1. First, determine the default point ($).
  2. Next, determine the market value of assets ($). 
  3. Next, determine the asset volatility (%). 
  4. Next, gather the formula from above = EDF = DP / MVA * AV.
  5. Finally, calculate the EDF.
  6. 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.

default point ($) = 50,000,000

market value of assets ($) = 70,000,000

asset volatility (%) = .75

EDF = DP / MVA * AV =  ?