A generic tag to understand the calculations in a specific case. Please give out a sample illustration and ask a specific question. Ideally should also be accompanied by specific subject tags like "credit-cards", "savings-account", "index-funds" etc.

learn more… | top users | synonyms

0
votes
2answers
42 views

Could somebody explain Wikipedia's VAT example calculation to me?

Wikipedia example here. I could not understand why in this example ("With a value-added tax" subsection) the government charges 0.10 = $1 × 10%, but not 0.11 = $1.1 × 10% The manufacturer spends ...
1
vote
3answers
46 views

Average cost basis based on total shares held or specific shares sold?

Let's say I bought 1 share in a Vanguard mutual fund each year for 10 years. Its price started at $1 and went up by exactly $1 each year, so the price of the latest share bought is $10. The average ...
2
votes
3answers
73 views

Fundamentals of creating a diversified portfolio based on numbers?

There are a number of articles and posts across the internet describing how to diversify your portfolio. But, each claim typically focuses on how to allocate your portfolio rather than describing ...
2
votes
2answers
309 views

How does this retirement fund calculator work?

I found a retirement fund calculator on web: Inflation rate: 2% 0% 2% 0% Expected return rate: 5% 0% 0% ...
8
votes
5answers
3k views

Do I owe taxes if my deductions are higher than my income?

My total income this year was $16,604 (wages, interest, and business income). My deductions (including IRA, personal exemption, standard deduction, and self employment tax) was $17,404. TurboTax ...
4
votes
2answers
3k views

How is my 'Personal Investment Performance' on my 401(k) calculated?

My 401(k) shows the following: my starting value at the beginning of the year personal contributions employer contributions investment gains/losses Closing value from Yesterday Total Change ...
1
vote
2answers
37 views

Is this the right tax statement for Roth IRA back conversion?

I moved $5500 from traditional IRA to Roth IRA in January 2014 for tax year 2013 . Then I moved another $5500 from traditional to Roth IRA for tax year 2014 in March 2014. When depositing fund in IRA, ...
3
votes
1answer
646 views

What is the full formula for calculating a FICO 9 credit score?

I'm familiar with the percentage breakdown of how a credit score is calculated. I'm wondering what is the exact formula is that can be used to come up with a point value based on specific input ...
1
vote
1answer
275 views

Calculate the optimum contribution to Provident Fund(PF) account

I am fresh out of college and started working and want to work out how much I should contribute to my Provident Fund account to maximize the benefit from tax deductions. I am from India, so for those ...
5
votes
4answers
871 views

How are bonuses taxed? Why is withheld amount not same as final amount?

I have not found any clarity looking at a lot of search engine results and articles. Most articles state that there are 2 possibilities, that taxes from bonuses can be withheld at a flat 25% rate, or ...
3
votes
4answers
153 views

A calculator that takes into account portfolio rebalancing?

I'm looking for a calculator that takes into account rebalancing when estimating total returns using historical data. For example, I'd input the following into the calculator: I have an initial ...
1
vote
0answers
24 views

How is minimum payment calculated for this daily amortized loan?

I'm trying to figure out how the bank calculated the minimum payment for a personal loan. Starting Principle: $6,800 Interest Rate: 13.750% Loan Term: 36 months Payment Frequency: Monthly Start ...
1
vote
1answer
34 views

What Percentage of my Income do I Have to Pay in Employment Insurance (EI) Deductions?

I am from Calgary, Alberta, and I am wondering how much % of my hourly wage will be paid to my EI (employment insurance). Is the percent rate different for every worker, if not, what is the fixed ...
2
votes
1answer
66 views
0
votes
1answer
103 views

How do I calculate my net worth according to the book “The Millionaire Next Door”?

I remember reading about PAWs, UAWs, and AAWs. I also remember that the formula for what your net worth should be on average (to be an AAW) is your income (without inheritance[s]) multiplied by one ...
1
vote
2answers
149 views

How do you choose which mortgage structure is appropriate when buying a home?

My lease is up in 1 month, and I'm looking to buy a home in the next 4 weeks. I have narrowed it down to two that I am interested in. I'm wondering about the type of mortgage I should get. Which ...
4
votes
1answer
515 views

Calculating equity split in selling a property

Purchased a property with another person in 1998. We remained equitable partners until April, 2009 when the other party stopped paying their share of the mortgage, condo fees, property tax, upkeep. I ...
2
votes
2answers
127 views

What is the best way to calculate total yield on a stock portfolio?

What is the best way to calculate the total yield of a stock portfolio? I started managing my own investments last year and it looks like I leaned towards dividend investing. I am wondering how I ...
2
votes
1answer
105 views

Calculating total number of monthly payments in Excel using NPER and PMT?

How to calculate the total number of monthly payments given the amount of loan ($275,000), the annual interest rate (4.35%) and the number of years (30)? I'm confused because I'm trying to use the ...
10
votes
2answers
22k views

How to determine contractor hourly rate and employee salary equivalents?

I am aware of the general differences between being an employee and being an independent contractor. However, I am unable to easily compare the two when it comes to after-tax compensation. Company ...
6
votes
3answers
2k views

In the event of a corporate spin-off, how can I calculate the correct cost basis for each company's shares?

Consider this example: Siemens is going to have a spin-off (next Monday). If I owned, say, 10,000 shares of Siemens bought at an average price of 80 euros, my cost would be 800,000 euros. In the ...
3
votes
5answers
708 views

Why would one W-2 give so much more back than the other?

I'm a single male with no dependents. I had two W-2s for this year, one of which showed a gross earning of ~$30,000 while the second was for ~$20,000. When I fed the first one into TurboTax, I got a ...
1
vote
2answers
149 views

Not receiving a tax refund because local taxes weren't withheld on my paycheck?

For instance, if the local New York City tax wasn't taken out of my paycheck, does that directly affect my tax refund? From what I understand the calculation for a tax refund is dependent on whether ...
3
votes
2answers
585 views

How does “on the next percentage” work (for company matching)?

For example, if I contribute 5%, the company matches that contribution with: 100% on the first 2% 40% on the next 2% 25% on the next 1% How do you calculate the next percentage.. and of what ...
2
votes
2answers
116 views

Mathematics behind deciding to do a lump sum mortgage payment vs. RRSP contribution?

If I have 10,000 extra dollars, how could I decide between doing either: A lump sum mortgage prepayment (2.1% variable closed interest rate, 250k remaining balance), or, An RRSP contribution ...
-1
votes
2answers
1k views

Choosing between two car deals on the same car - NPV

This is basic question, but I have starred myself blind on it - I am stuck. I am not sure which formulae I should use. Here is the story. I am looking to buy a car. I have found two dealerships ...
3
votes
1answer
271 views

If I earn 40 credits and stop working, would I get full Social Security benefits at age 67?

If I met my 40 credit requirement in my 30s, and then left the States permanently and work at another country, and pay taxes there, not to the US, would I receive the full benefits when I become ...
2
votes
1answer
64 views

How does Value get rounded in figuring out Bonds Value?

I was reading up on Bonds here on About.com Why Do Bond Prices and Yields Move in Opposite Directions? In the second example it offers: In this example, the opposite scenario occurs. The same ...
4
votes
2answers
360 views

Formula to decide when to break a Certificate of Deposit (CD)?

I'm trying to create a certificate of deposit (CD) comparison tool and have been working on a formula to compare a CD with a higher interest rate to a CD I might own with a penalty period. I believe ...
5
votes
2answers
3k views

How to translate old price amounts to their modern day equivalents?

I hope this is the right place to ask. :) I'm currently working on what is to be a wiki/encyclopedic website. Some articles contain amounts or prices like construction costs and such, but since these ...
1
vote
1answer
75 views

How do I calculate the return on my stock _call_ option, similar to my _put_ example?

I'm trying to figure out the effective percentage return when I write ("sell to open") a stock call option. I think I've figured it out for put options. Consider this put example I think XYZ stock ...
6
votes
6answers
5k views

Why do mortgage affordability recommendations use gross income?

Whenever I see someone ask how to calculate how big a mortgage he can afford, the answer almost always comes back as a percentage of gross income. Why use gross income as the baseline? Why not net ...
0
votes
2answers
66 views

How would you figure the cost of something in the future including inflation?

Looking for an excel formula that can calculate the cost of something based on a current price that factors in price increases and inflation. For example a plane ticket cost (econ LAX to JFK) in 30 ...
1
vote
1answer
120 views

Income tax calculate on your per company or on my total income in year?

I don't know if this is right place of ask this question. But still need to ask. Now I start financial year with by company A. So company A only provide final settlement account ( including AVP ) in ...
0
votes
0answers
53 views

Calculate a realistic project valuation?

If we have a profitable project where profit is x and cost of equity is y and the project has 0 growth and nothing else changes, then the value according to a perpetuity will be x/y e.g. profit this ...
0
votes
0answers
45 views

Options contract calculator - for non-equities

All of my options calculators are within stock trading platforms, or readily found on the internet and require stock/index symbols. I am trading illiquid options over the counter, on an asset. I have ...
1
vote
0answers
73 views

How to calculate interest charged on my loan given a series of dates & payments?

I want to calculate the interest rate payed for this loan using Mathematica. The initial amount was of 12000€, then they asked to pay 240€ for opening the loan and another 870€ for the insurance for ...
0
votes
0answers
39 views

How are the sub-periods derrived in TWRR Daily Valuation?

I've been looking at the TWRR Daily Valuation method and I'm trying to understand how to break the total performance period into sub-periods when there are irregular cash flows. As the article ...
2
votes
2answers
104 views

How can we determine how much income our savings could generate if we purchase an annuity?

I am 62 and my wife is 56. We have almost 1.5 M in retirement investment and 250 K in non retirement investments. I was wondering if we both retire in 6 years and turn all our investment into annuity, ...
1
vote
0answers
67 views

Excel Canadian Mortgage Formula Help

I need to get the ending balance formula for a project in excel calculating mortgage payout. I am hoping to develop a formula instead of formulating an amortization table. I have used the following ...
9
votes
4answers
398 views

How do you go about calculating how much you need after retirement?

I am posting this question after reading this article on WSJ, where it says: Just 42% of working-age Americans have even tried to calculate what they will need in retirement, according to the ...
0
votes
2answers
323 views

Formula for how to distribute a loan payment between multiple loans such that the remaining principal accrues the least interest?

Assume 4 loans (Balance @ p.a. interest): $10,000 @ 5.5% $5,500 @ 7.25% $2,000 @ 5.5% $1,000 @ 4.5% If I am looking to pay $7,250 towards principal only, how would I calculate the ...
0
votes
3answers
65 views

Personal Loan issuer online service

I have chunk of money that I would like to loan to my brother. I would like to charge him interest same as banks do. Is there a website or online service where I can enter the "loan" amount, ...
9
votes
3answers
2k views

Buying a more expensive house as a tax shelter (larger interest deduction)?

I've heard that some people buy a more expensive house as a tax shelter. In my simple mind I imaging the scenario: Pay 10,000 annual interest on the mortgage 50,000 annual income = 40,000 ...
0
votes
3answers
46 views

IRR Calculation

I have a series of cash flows, a $1000 deposit, and then 5 annual withdrawals of $500,$400,$200,$200,and finally, $100. I understand this is an IRR calculation, and set it up as follows: ...
0
votes
1answer
54 views

How can I calculate minimum payment on quick loan? [closed]

I am working on calculator for quick loans. Client can select how much he will pay monthly. Base on it payment schedule will be calculated. Payment interest depends on 1 payment period. Number of ...
-2
votes
1answer
163 views

Which of these unrealized profit calculations is correct? And, why other calculations are wrong?

Which of these unrealized profit calculations is correct? And, why other calculations are wrong? @ $10 per unit, $1000 - Subscription (100 units) $0500 - Cash dividend (50 units) $0500 - Reinvested ...
1
vote
1answer
196 views

Find monthly interest rate from principal, monthly payment, and loan's term?

Is there a formula to find the monthly interest rate required on a compounded interest fixed-rate mortgage loan, given the principal, the monthly payment, and the loan's term?
3
votes
2answers
4k views

What is the equation for an inflation adjusted annuity held in perpetuity?

What is the equation relating an initial investment, a fixed rate of return, an inflation rate, and a perpetual payment adjusted for that inflation rate?
3
votes
2answers
10k views

How do I calculate yield-to-maturity (YTM) with a simple handheld calculator?

Is there a way to calculate yield-to-maturity (YTM) using just the payments (not all equal) with just a simple handheld calculator and without using Excel?