Portfolio at risk: the formula and the calculator
What PAR means, how to calculate PAR 1, PAR 30 and beyond, how it differs from recovery rates, and a calculator that updates as you type.
- PAR by threshold
- By branch and product
- By field officer
- Trend
- OTR and CRR
Portfolio at risk (PAR) is the share of a microfinance loan portfolio held by borrowers who are behind on payments. PAR 30 is the total outstanding principal of all loans with any instalment more than 30 days overdue, divided by the total outstanding portfolio. The whole balance of a late loan counts, not only the late instalment. EOMS BD produces PAR by branch, product and field officer every month.
পোর্টফোলিও অ্যাট রিস্ক (PAR) কী ও কীভাবে হিসাব করবেন
পোর্টফোলিও অ্যাট রিস্ক (PAR) হলো মোট ঋণের কত অংশ বকেয়াদার ঋণগ্রহীতাদের কাছে আছে। PAR ৩০ = যেসব ঋণের কোনো কিস্তি ৩০ দিনের বেশি বকেয়া, সেগুলোর পুরো আউটস্ট্যান্ডিং ÷ মোট আউটস্ট্যান্ডিং। শুধু বকেয়া কিস্তি নয়, পুরো ব্যালান্স ধরা হয়। EOMS BD প্রতি মাসে ব্রাঞ্চ, প্রোডাক্ট ও মাঠকর্মীভিত্তিক PAR তৈরি করে।
Why PAR figures are often wrong
PAR is the most watched risk number in microfinance, and also one of the easiest to understate by accident.
Only the late amount counted
Using overdue instalments instead of the full outstanding balance of late loans makes PAR look far smaller.
Rescheduled loans hidden
Rescheduled loans are treated as current, which hides risk that is still there.
Mixed with OTR
On-time recovery and cumulative recovery are reported as if they were PAR, but they measure different things.
Different dates
Branches calculate on different days, so the consolidated PAR does not add up.
Type your portfolio by days overdue and watch PAR update
Enter the outstanding balance in each overdue group. The calculator shows PAR 1, PAR 30 and PAR 180 instantly, and the coloured bars show how the portfolio is spread.
- PAR by threshold
- By branch and product
- By field officer
- Trend
PAR = full outstanding of loans overdue beyond the threshold ÷ total outstanding. Change the numbers to see it move.
What your organisation gets
PAR by threshold
PAR 1, 30, 60, 90 and 180 from the same ageing on the same date.
By branch and product
See which branch, product or samity is driving risk.
By field officer
PAR per officer, alongside portfolio size and borrower count.
Trend
Monthly PAR trend so management sees early warning signs.
OTR and CRR
On-time and cumulative recovery rates shown separately with their own formulas.
Linked to provision
The same ageing feeds loan loss provision, so both always agree.
Agreed to the ledger
Total portfolio in the PAR report equals the loans balance in the accounts.
Board and lender reports
PAR tables ready for the board, PKSF and other lenders.
A complete NGO accounting system: software and service
Switch on only what you need. Hand us the whole job, or let your own team run the software.
Accounts
- Chart of accounts mapped to MRA/donor formats
- Vouchers with approval steps
- Ledger, cash and bank books
- Trial balance and statements
- Budget vs actual
Loans
- Product-wise disbursement & recovery
- Service charge (declining balance)
- Accrued service charge
- Write-off, waiver, rescheduling
- Loan ageing & provision
Savings & insurance
- General, voluntary & term savings
- Interest on savings
- Savings adjustment on closing
- Micro-insurance / risk fund
- Admission & passbook fees
Branches & funds
- HO, zone, area, branch structure
- HO current accounts & fund transfers
- Consolidated statements
- PKSF & bank borrowings
- Reserve & disaster funds
Donor projects
- Restricted & unrestricted funds
- Donor & budget-line coding
- Shared-cost allocation
- Advance and liquidation
- Donor financial reports
People & assets
- Payroll with field allowances
- Provident fund & gratuity
- Staff loans & security deposits
- Fixed assets & depreciation
- Tax & VAT deducted at source
Reports
- MRA-format monthly/quarterly/annual
- PKSF and lender reports
- NGO Affairs Bureau project accounts
- PAR, OTR, OSS, FSS
- Audit-ready statements & notes
Control & ownership
- Keep your current MIS
- Role permissions & audit trail
- Written NDA, your data stays yours
- Daily backup, cloud access
- Bangla + English, Excel/PDF
First consultation free, then a written quote
Tell us your branches and members, projects and donors, current software and the reports you need. We send a work plan and a line-by-line written quote, with no hidden charges.
Six kinds of organisation, one accounting system
Each has its own regulator, rules and reports, and the system is set up for that.
How we start, in 5 steps
Fix the reporting date
All branches use the same cut-off date.
Age every loan
Days overdue counted from the oldest unpaid instalment.
Sum full balances
Add the full outstanding principal of loans beyond each threshold.
Divide by the portfolio
Divide by total outstanding principal on the same date.
Agree and report
Check totals against the ledger and publish by branch and product.
PAR, OTR and CRR: what each one tells you
| Indicator | What it measures | Formula in short |
|---|---|---|
| PAR 30 | Portfolio held by late borrowers | Outstanding of loans over 30 days late ÷ total outstanding |
| PAR 1 | Any lateness at all | Outstanding of loans with any overdue ÷ total outstanding |
| OTR | How much due was paid on time | Amount paid on time ÷ amount due in the period |
| CRR | Recovery since the start | Total recovered ÷ total due to date |
| Write-off ratio | Losses taken | Loans written off in the period ÷ average portfolio |
| Provision cover | Protection against losses | Loan loss provision ÷ portfolio at risk |
Frequently asked questions
PAR (x days) = outstanding principal of all loans with an instalment more than x days overdue ÷ total outstanding principal of the portfolio, shown as a percentage.
It is the share of the portfolio held by borrowers who have at least one instalment more than 30 days late. It is the most commonly reported PAR threshold.
Because a borrower who has stopped paying puts the whole remaining loan at risk, not just the missed instalment.
If total outstanding is ৳91,00,000 and loans more than 30 days late have ৳4,50,000 outstanding, PAR 30 is 4,50,000 ÷ 91,00,000 = about 4.9 percent.
OTR looks at what was due in a period and how much was paid on time. PAR looks at the outstanding portfolio and how much of it sits with late borrowers. Both are needed.
They should be reported separately or kept at risk according to your policy and regulator rules, so the risk is not hidden.
Yes. We produce PAR by branch, product and officer every month from your MIS, agreed to the ledger, along with provision and recovery rates.
More on NGO & microfinance accounting
See your real PAR, branch by branch
Send your latest ageing report. We will recalculate PAR correctly and show where the risk sits.
+880 1784-222255info@eomsbd.com · Dhaka, Bangladesh