Calculator
Example data table
Use these sample inputs to verify outputs and exports.
| Standard Premium | Incurred Losses | LDF | LCF | BPF | Tax Mult. | Min Factor | Max Factor |
|---|---|---|---|---|---|---|---|
| 25000 | 18000 | 1.05 | 1.10 | 0.25 | 1.06 | 0.80 | 1.20 |
| 40000 | 12000 | 1.10 | 1.12 | 0.22 | 1.07 | 0.75 | 1.30 |
| 60000 | 52000 | 1.03 | 1.08 | 0.28 | 1.05 | 0.85 | 1.15 |
Formula used
1) Developed losses: Developed = Incurred Losses × LDF
2) Converted loss: Converted Loss = Developed Losses × LCF
3) Basic premium: Basic Premium = Standard Premium × BPF
4) Pre-tax premium: Pre-Tax = Converted Loss + Basic Premium
5) Unbounded premium: Unbounded = Pre-Tax × Tax Multiplier
6) Final premium with limits: Final = clamp(Unbounded, Min, Max)
7) Limits: Min = Standard × Min Factor, Max = Standard × Max Factor
How to use this calculator
- Enter the standard premium from your rating worksheet.
- Add incurred losses for the same policy period.
- Set LDF to project incurred losses to ultimate.
- Set LCF to include claim handling and adjustment costs.
- Choose a basic premium factor for fixed expenses and profit.
- Apply your tax multiplier and min/max factors.
- Click calculate, review charts, then export your results.