# LCR Calculator – Liquidity Coverage Ratio

URL: https://speedycalculator.com/calculators/finance/lcr/
Last updated: 2026-10-25

> The LCR calculator works out a bank's liquidity coverage ratio under Basel III – high-quality liquid assets (after haircuts) divided by total net cash outflows over 30 days – and checks the 100% minimum.

## Inputs

- Level 1 assets (cash, central bank reserves, government bonds)
- Level 2A assets (before 15% haircut)
- Level 2B assets (before 50% haircut)
- Total cash outflows (30 days)
- Total cash inflows (30 days)

## Results

- High-quality liquid assets (after haircuts)
- Net cash outflows
- Liquidity coverage ratio
- Basel III minimum

## Formula

```
HQLA = Level 1 + 85% × Level 2A + 50% × Level 2B (Level 2 ≤ 40%, 2B ≤ 15% of HQLA)
Net outflows = outflows − min(inflows, 75% × outflows)
LCR = HQLA ÷ net cash outflows × 100 (≥ 100%)
```

## Explanation

The LCR ensures a bank can survive a 30-day stress scenario using its own liquid assets. It was phased in after the 2008 crisis and has applied in full since 2019.

### How to use the LCR Calculator – Liquidity Coverage Ratio

- **Level 1 assets (cash, central bank reserves, government bonds)**
- **Level 2A assets (before 15% haircut)**
- **Level 2B assets (before 50% haircut)**
- **Total cash outflows (30 days)**
- **Total cash inflows (30 days)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter Level 1, Level 2A and Level 2B assets, and the expected cash outflows and inflows over 30 days.

### Tips

- Use real (inflation-adjusted) figures to compare across years.
- Check whether data are seasonally adjusted.
- Use the same currency and base year throughout.
- Economic models simplify reality – treat results as illustrations, not forecasts.

### Common mistakes to avoid

- Mixing nominal and real values.
- Comparing percentage changes with percentage-point changes.
- Treating correlations as causes.

### Inputs explained

FieldWhat to enterLevel 1 assets (cash, central bank reserves, government bonds)Amount in your currencyLevel 2A assets (before 15% haircut)Amount in your currencyLevel 2B assets (before 50% haircut)Amount in your currencyTotal cash outflows (30 days)Amount in your currencyTotal cash inflows (30 days)Amount in your currency

### What each result means

- **High-quality liquid assets (after haircuts)** = [Level 1 assets (cash, central bank reserves, government bonds)] + 0.85×[Level 2A assets (before 15% haircut)] + 0.5×[Level 2B assets (before 50% haircut)]
- **Net cash outflows** = [Total cash outflows (30 days)] - min([Total cash inflows (30 days)], 0.75×[Total cash outflows (30 days)])
- **Liquidity coverage ratio** = [High-quality liquid assets (after haircuts)]÷[Net cash outflows]×100

### Example values

How the main result changes when **Level 1 assets** changes and everything else stays at the example values above:

Level 1 assets (cash, central bank reserves, government bonds)Liquidity coverage ratio (%)25079.5375104.5500129.5625154.5750179.51,000229.5

## Worked example

Inputs — Level 1 assets (cash, central bank reserves, government bonds): $500; Level 2A assets (before 15% haircut): $150; Level 2B assets (before 50% haircut): $40; Total cash outflows (30 days): $700; Total cash inflows (30 days): $200.

Results — High-quality liquid assets (after haircuts) = $647.50; Net cash outflows = $500.00; **Liquidity coverage ratio = 129.5 %**; Basel III minimum = Meets the 100% minimum.

## FAQ

**What is the liquidity coverage ratio?**
HQLA ÷ net cash outflows over 30 days.

**What is the minimum LCR?**
100% under Basel III.

**What are HQLA?**
Assets easily converted to cash, like reserves and government bonds.

**What formula does the LCR Calculator – Liquidity Coverage Ratio use?**
HQLA = Level 1 + 85% × Level 2A + 50% × Level 2B (Level 2 ≤ 40%, 2B ≤ 15% of HQLA).


## Sources

- [BIS – Basel III: The Liquidity Coverage Ratio](https://www.bis.org/publ/bcbs238.htm)