Loss Ratio Calculator
Divide claims paid by premiums earned to find the loss ratio, the share of premium income an insurer pays out in claims.
- Free
- No sign-up
Enter claims paid and premiums earned to see the loss ratio.
Worked example
With these example inputs:
- Claims paid$650,000
- Premiums earned$1,000,000
Loss ratio: 65.0%
- The remaining share35.0%
- If the first figure were 10% higher71.5%
Frequently asked questions
What is the loss ratio?
It is claims paid as a percentage of premiums earned. A loss ratio of 65% means an insurer pays 65 cents in claims for every premium dollar.
What is a healthy loss ratio?
It varies by line of insurance, but a ratio that is too high threatens profit, while a very low one may suggest overpriced premiums or under-paid claims.