# Questions tagged [calculation]

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.

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1 vote
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This investment returns calc, which seems to be widely used, explicitly states that contributions are made at the beginning of each period. If I enter: 10 years 7% RoR \$10,000 initial investment \$1,...
• 13
207 views

### How to calculate yearly average inflation rate having only percent changes?

I'm trying to calculate yearly average inflation rate across a period of years displayed in my screenshot having only percent changes for each year. I'm unsure how that should be done and have tried 3 ...
• 159
269 views

### Who gets fractional sales tax?

A 7% sales tax on an item costing \$10.00 would be 70¢. On \$9.99, it would come to 69.93¢, but the customer still pays 70¢. Where does that 0.07 of a cent go? Put another way, a hundred \$10 ...
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1 vote
68 views

### How to Calculate Future Inflation-Adjusted Investment Balance with Monthly Contributions, Annual Interest, and Fees

I would like to calculate the future value of an investment, considering monthly contributions and an annual interest rate (i.e., return). I also want to adjust the final figure to account for annual ...
• 475
236 views

### How to calculate monthly payment of a loan

I am trying to solve this question: Your brother-in-law asks you to lend him \$100,000 as a second mortgage on his vacation home. He promises to make level monthly payments for 10 years, 120 payments ...
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1 vote
50 views

### How can I calculate the time weghted return?

I have switched frequently between ISA providers and I want to see how much my investments have truly increased. I have a spreadsheet where column 1 is the date I invested a certain amount, column 2 ...
1 vote
123 views

### Price for a bond that was issued in the past?

I understand that for US treasury bonds, that the price, its current yield and annual coupon is related by price = coupon/yield. But the prices and yields when I look them up online are always denoted ...
• 111
1 vote
52 views

### Instalment interest calculation in Canada for individuals

I made no instalments payments in 2023 as I thought my net tax owing in 2023 would be below \$3000. I received instalment reminders from CRA and I ignored the emails. Now, I believe my net tax will be \$...
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1 vote
59 views

### How to calculate PV of annuities for a home loan

I am trying to model investing in residential real estate vs investing fully in stock. I have a corpus of say 1M in S&P500. I also receive monthly income which will be used to either invest in ...
139 views

### How to solve amortization schedule where 10% of the interest is paid back on 4th payment

I am trying to find an algorithm to solve this amortization schedule: P = 1000, term = 12 months, Interest=5%, calculation based on actual/365. 10% of the total interest of the loan is added to the ...
• 11
535 views

### What is the correct Formula for calculating fund growth with fees

I am considering two different options for a roth IRA. A managed fund that has a higher historical growth rate but 1% fee and a self directed vanguard account, which would have a lower growth rate but ...
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### How do I calculate the NPV(of DCF) of a mutual fund investment?

How do I measure the yearly cash-flow of a lumpsum mutual fund investment (or an equity investment) (provided I am not cashing out each year), also what do I take as the discount factor?
113 views

### Money-Weighted Returns calculation clarification

I found out this is the calculation for the Money-Weighted Returns. From what I understand, PVO can also be seen as "Present Value of the portfolio". If this is the case, doesn't the right-...
• 123
222 views

### For this I-bond calculation there's a tiny adjustment to the rate (fixed rate x semiannual inflation rate) it barely changes the rate.Why is it there?

From https://www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/#cerates Composite rate formula: [Fixed rate + (2 x semiannual inflation rate) + (fixed rate x semiannual inflation ...
156 views

### Sales tax calculation algorithm

I need to code a tax calculation algorithm for a project. What is the correct algorithm for calculating sales taxes on an sales receipt? Given a sales receipt with 3 items (A,B,C) and a 4 taxes (W,X,Y,...
214 views

### How to calculate portfolio performance without tracking each individual transaction

How does one go about calculating the performance of a portfolio when the portfolio is robo-managed and rebalances often, therefore making tracking every transaction and exact holdings over time a ...
• 143
39 views

### Calculating Interest Expense with amortization

Preface: I'm an engineer not an accountant so all this finical modeling stuff is new to me. I've been given the task to take an existing finical model in Excel and put it into a jupyter notebook. One ...
1 vote
65 views

### S&P 500 eps calculation

I am trying to calculate the eps for S&P 500 in order to validate the data I parsed (I got eps for 430 companies Q3 2022 year). I used different sources: seeking alpha API (is not connected with ...
75 views

### Margin calculation on short and long positions combined

Assume an investor goes long on X1 and simultaneously short on X2 both of which cost \$1. With margin rate at 50% he is required to deposit 0.5 + 0.5 = \$1 margin to make the transaction. My question ...
199 views

### The interest rate of a (U.S. Treasury) "Floating Rate Note" (FRN)

I am having trouble to reproduce the calculation of the interest rate of a (U.S. Treasury) "Floating Rate Note" (FRN). Can you help me to find my error? The calculation is described here: ...
• 245
266 views

### Calculating stock prices falls and rises

Let's say I close my investment of \$25 in a stock which is currently down from 313 to 123, I calculate my loss with this equation: ( ( Close - Open ) / Open ) * 100 = %change Which would leave me with ...
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### What is the difference between Capitalization Rate and Return on Assets?

In real estate, the capitalization rate (cap rate) is one of the metrics used to assess the rental profitability of a property. The formula for capitalization rate is net operating income divided by ...
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3k views

### Why the calculated cost of a loan is less than expected? Is the bank working at a loss?

Let's say I want to borrow \$1000 from a bank at an interest rate of 12% per year, for one year. The number of payments in this case is equal to 12 (one year * months per year) and the interest rate ...
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1 vote
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### For mutual funds, does average annual return mean compounded annually or continually or daily?

Vanguard's Portfolio Allocations page (1926-2019) shows 9.21% Average annual return for 70% Equity and 30% Fixed income. Does this mean 9.21% compounded annually? GOAL... If at age full retirement age ...
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1 vote
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### How to deal with spinoffs when calculating money-weighted rate of return (MWRR) of a stock investment

I am using a spreadsheet's XIRR function to calculate the money-weighted rate of return (MWRR) of my investment in "X Corporation" stock. X conducted a spinoff of "Y Corporation". ...
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231 views

### Discounted cash flow: meaning of terminal value formula

I am reading a book about stock valuation using fundamental analysis — Accounting for Value by Stephen Penman. The following discounted cash flow (DCF) formula appears in chapter 2 with almost no ...
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1 vote
196 views

### Calculate Loan Balance and Future Balance with Extra Repayments

So, here's the current situation. I took out a £7000 loan over 42 months at the insane interest rate of 47.4%. I needed the loan, couldn't borrow it off family, and the interest rate is due to some ...
416 views

### Position size calculator which includes fees in the risk

Problem: I have a position calculator for scalping, but currently it does not include entry/exit fees in my risk calculation. Since scalping, in most scenarios, requires leverage, those fees really ...
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1 vote
100 views

### Is this a good strategy to calculate Mutual Fund returns?

I am trying to track my mutual funds performance in a meaningful way. I tried using XIRR but my understanding of it is not entirely clear. So what I am alternately doing is for every individual ...
• 123
278 views

### What is the correct formula for Bond Yield?

Taking an introductory investment course, was following up on bond yields. I thought the yield is calculated as follows (sorry for some reason LaTex formatting doesn't work - so inserting an image): ...
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1 vote
258 views

### When using TWRR for an individual stock, how do I treat non-reinvested dividends?

I'm researching time-weighted rate of return calculations as a performance metric to use with individual stock security holdings. I've read multiple sources of information to include but not limited ...
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### Why does the TD Bank principal portion of a mortgage payment go up and down in sawtooth? (why is interest payment on annuity in arrears non-monotonic)

I'm trying to understand the amortization schedules of TD mortgages, as produced by the TD Calculator. The monthly payment amounts (on this fixed rate mortgage) are predictable and constant, but the ...
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335 views

### How do I calculate the performance of a stock investment in the presence of dividends, additional investment and partial sales?

What is a single metric I can use to calculate the performance of a stock investment in the presence of dividends, additional investment, and partial sales? Such a metric should be comparable across ...
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2k views

### How does selling some shares affect cost basis + average price

I am building a stock portfolio tracking application, and I am having some difficulties wrapping my head around something very basic (maybe I'm just tired) How does selling a stock affect the cost ...
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10k views

### At 3% inflation rate, is \$100 today worth \$40 20 years ago?

I'm little bit confused... At 3% inflation rate, is \$40 20 years ago worth \$100 today? Is it as simple as adding 60% of \$100 to get the worth of currency 20 years ago? Forgot about compound interest.....
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264 views

### How can I calculate amortized payment when the payments are made in advance?

I'm trying to calculate the payment amount on an amortized loan with interest where the payments are made in advance. If the payments are made in arrears there's a simple formula, but since the first ...
33 views

### How to calculate profits from a short position [duplicate]

Say I have a \$100 balance, the margin requirement is 10%, I short a stock at \$100, and the stock drops down to \$10, is my profit 90% or 1000%? To more more specific, is the profit 90% relative to my ...
1 vote
94 views

### Complete formula for calculating forex pip value for XAUUSD with account funded in euros

I'm currently developping forex robot using Python API for Metatrader 5. Among different things, this robot places trades given by external signals (with price, SL and TP). I use euro funded account, ...
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1 vote
108 views

### How to calculate distribution return for ETF?

I'm trying to calculate Growth and Distribution returns for ASX:VGS for 2021 based on historical data, but the results do not match what's published. Here I can see that in the 2021 Calendar year it ...
33 views

### Is there a citation for an apparent change in UK Tax Return calculation process, going into 2021/2

Examining my Tax Returns for the past 4 years, it seems that HMRC have changed one of their rounding policies (from previously being less accurate but in the individual's favour, to being more ...
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### How, *exactly*, do I calculate my UK PAYE personal Tax Allowance ... since it's not quite the published figure?

See here: UK Taxation: Should I be able to calculate my PAYE tax for the year exactly? It turns out that, contrary to common-sense, if someone is a fairly average person in England and thus has the &...
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### UK Taxation: Should I be able to calculate my PAYE tax for the year exactly?

Consider a simple employed person in the UK, with nothing particularly unusual or exciting. At the end of a given (financial) year they look at their payslips and they can see (amongst other things): ...
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1 vote
107 views

### How do I calculate Tax for a Long Term Capital Gain?

Do I calculate tax based on IRS tax tables on page 65 (or worksheet on page 77, 110) of https://www.irs.gov/pub/irs-pdf/i1040gi.pdf Or Do I calculate tax based on Qualified Dividends and Capital Gain ...
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### Why isn't there a universal investment standard/benchmark?

When I watch golf and look at the results of the top players, I can immediately know exactly how they compare both to the standard (called par) and to each other. Why doesn't investing have such a ...
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### What's the APR for this in combination with the Balloon Payment of 6525 USD?

I am trying to solve the following: Finance Amount: 24.951,82 USD Interest Rate: 2.29% Residual Value: 6.525 USD Number of Months: 60 Fee: 374.28 Years: 5 What's the APR for this in combination with ...
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1 vote
45 views

### How to calculate profit on real estate after x years?

If I want to calculate the "profit if sold" for a property after X years, what is this calculation based on? One thought is it is equal to the projected sale price (based on some assumption ...
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1 vote
52 views

### How do I Calculate this Estimated Weighted Return?

I am trying to figure out how to calculate an estimated weighted return. For example, imagine I have the following portfolio: | ETF | Quantity | Value | Weight | Estimated Return | Estimated ...
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### Mismatch Between FV Function and the Bankrate Simple Savings Calculator

I'm trying to replicate the functionality of the Bankrate Simple Savings Calculator in Google Sheets. I've assumed that I need to use the FV function, but I can't get the numbers to match exactly. ...
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1 vote