1. What is DPD (Days Past Due)?

Definition: DPD measures how many days a payment is overdue from its due date.

Purpose: It helps lenders assess delinquency risk and manage collections for loans, credit cards, and other financial products.

2. How Does the DPD Calculator Work?

The calculator uses the formula:

Where:

• \( DPD \) — Days Past Due (always ≥ 0)
• \( Current\ Date \) — Today's date or specified date
• \( Due\ Date \) — Original payment due date

Explanation: The calculator subtracts the due date from the current date to determine days overdue. If current date is before due date, DPD is 0.

3. Importance of DPD Calculation

Details: DPD is crucial for:

• Risk assessment in lending portfolios
• Determining delinquency stages (30, 60, 90 days past due)
• Prioritizing collection efforts
• Regulatory compliance reporting

4. Using the Calculator

Tips:

• Enter the current date (defaults to today)
• Enter the original due date
• Calculator will show days overdue (0 if not yet due)

5. Frequently Asked Questions (FAQ)

Q1: What if the payment isn't overdue?
A: The calculator will return 0 DPD if current date is on or before due date.

Q2: How do financial institutions use DPD?
A: DPD determines delinquency buckets (30-59 days, 60-89 days, 90+ days) for risk management.

Q3: Does DPD include weekends/holidays?
A: Yes, DPD counts all calendar days including weekends and holidays.

Q4: What's the maximum DPD value?
A: There's no technical limit, but accounts are typically charged off after 180 days.

Q5: How is DPD different from payment terms?
A: Payment terms define when payment is due, while DPD measures how late payment is after due date.