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 =  ?