Enter the premium cost ($), the estimated cost of retained losses ($), and the risk management costs ($) into the Total Cost of Risk Calculator. The calculator will evaluate the Total Cost of Risk.

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## Total Cost of Risk Formula

The following formula is used to calculate the Total Cost of Risk.

**TCOR = PC + RL + RMC**

Variables:

- TCOR is the Total Cost of Risk ($)
- PC is the premium cost ($)
- RL is the estimated cost of retained losses ($)
- RMC is the risk management costs ($)

## How to Calculate Total Cost of Risk?

The following steps outline how to calculate the Total Cost of Risk.

- First, determine the premium cost ($).
- Next, determine the estimated cost of retained losses ($).
- Next, determine the risk management costs ($).
- Next, gather the formula from above = TCOR = PC + RL + RMC.
- Finally, calculate the Total Cost of Risk.
- 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.

premium cost ($) = 500

estimated cost of retained losses ($) = 300

risk management costs ($) = 1,000

TCOR = PC + RL + RMC =** ** ?