Enter the projected claims ($) and the earned premiums ($) into the Calculator. The calculator will evaluate the Expected Loss Ratio.

## Expected Loss Ratio Formula

ELR = PC / EP

Variables:

- ELR is the Expected Loss Ratio ($/$)
- PC is the projected claims ($)
- EP is the earned premiums ($)

To calculate the Expected Loss Ratio, divide the projected claims by the earned premiums.

## How to Calculate Expected Loss Ratio?

The following steps outline how to calculate the Expected Loss Ratio.

- First, determine the projected claims ($).
- Next, determine the earned premiums ($).
- Next, gather the formula from above = ELR = PC / EP.
- Finally, calculate the Expected Loss Ratio.
- 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.

projected claims ($) = 500

earned premiums ($) = 700