Loss - Definition and Overview

Loss has several meanings including:

• Loss in electronics is the ratio of the system output to system input

In electronics, loss is the ratio of system output to system input. Calculation and units used are the same as with Gain, except that the output is less than the input. Loss is often expressed as a negative gain (if expressed in dB) or as a gain of less than one.

For example: if input=100mW and output=5mW then

loss = 5/100 = 0.05 = -1.3B (bel) or -13dB

• Loss in finance or insurance is the reduction in financial value after an event occurs. It may involve a capital loss from an income tax perspective, or a property or a casualty loss.

• In futures, reduction in trading capital.