On this page is a bank *tier 1 leverage ratio calculator*. Enter the bank's reported Tier 1 Capital and Total Assets to compute the Tier 1 Leverage Ratio.

## Tier 1 Leverage Ratio Calculator

**Table of Contents**show ▼

## What is the Tier 1 Leverage ratio?

A bank's *Tier 1 leverage ratio* is the percentage of its total assets which are classified as Tier 1 capital (highest quality and liquid). Tier 1 capital is defined by Basel III, and refers to high quality liquid assets which can be readily converted to cash if necessary – but not necessarily the highest quality assets, termed Common Equity Tier 1 Capital.

Basel III required a tier 1 leverage ratio greater than 3% [PDF] at phase-in, but always check the latest requirements.

### Tier 1 Leverage Ratio Formula

The tier 1 leverage ratio formula is:

Tier\ 1\ Leverage\ Ratio=\frac{Tier\ 1\ Capital}{Total\ Assets}

*Where:*

**Tier 1 Capital**– Very high quality liquid assets, as defined by Basel III.**Total Assets –**All assets owned by a bank.

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