# 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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35 views

### Question about calculating wash sales across multiple orders

How do I handle the accounting of my wash sales? I bought AXP in 3 different orders, all purchased within 5 days of each other: 100 @ 122 100 @ 100 100 @ 76 I sold all 300 @ 102, and then ...
54 views

### How is interest calculated on P2P lending?

I invested 102€ on a P2P site on a business loan. Here are the details of the loan: Issue date: 18.01.2020 (DD//MM/YYYY date format) Maturity date: 18.03.2020 Interest rate: 13% annually. I ...
346 views

### How to calculate the return from a mutual fund?

How do I calculate the return from a mutual fund invested as a monthly SIP of Rs. 5000 over a period of 3 years at a return rate of 20.4% per annum? The projected amount for the same is calculated by ...
43 views

### Why we need to substract one period when calculating Present Value?

The question is: Grandparents are funding a newborn’s future university tuition costs, estimated at \$50,000/year for four years, with the first payment due as a lump sum in 18 years. Assuming a 6% ...
26 views

### Calculating relative performance of a short trade

This may seem incredibly simple, but I just can't get my head around it. Example: I make a short trade and the stock falls by 20%. During that period, the index falls by 10%. Have I made a +10% ...
115 views

### Formula to compare the potential earnings of buying the same stock at different prices

If I want to buy an index fund, I could buy it today at the current price, or I could setup a limit order and try to buy it at a lower price. Obviously it's better to get it at the lower price, but ...
40 views

### Principle and interest calculations [closed]

I have a loan at 5%, I know the total owed and the monthly payment and need aschedule giving me the interest and principle paid each month until paid in full. Where can i find a schedule calculator ...
78 views

### How To Calculate Daily Volatility?

I'm working in SQL Server and I'm trying to find the daily volatility of a stock's price. Is it simply day2price/day2price-1? Is that considered daily volatility? Or, is there something else to it? ...
52 views

### Is appreciation added to the “cost of investment” when calculating ROI?

If I buy a rental property with \$100,000 in equity and every year it appreciates \$5,000, has a net income of \$5,000 and has principal paydown of \$5,000, how would I calculate my ROI at the end of year ...
47 views

### How to calculate mean annualised returns

I am trying to calculate the mean annualised return for a fund using historical monthly returns but I am having difficulty in finding an appropriate method to do so. Many studies have used mean ...
566 views

My Ex owes me \$66000 and I need to give him a payment plan with 8% interest over 5 years. The monthly repayments need to tier roughly as follows (he's going to earn more in the 2nd and 3rd years and ...
54 views

### How to calculate stock return

Is there a formula to calculate compound return of a given stock, taking into account dividend and reinvestment? For example, a stock which returns 5% yearly plus a 3% annual dividend (paid every ...
43k views

### Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel?

I often see banks advertise (for accounts with fixed yearly interest, let's say 1.5%) – "interested is calculated daily, and compounded monthly". I have 2 questions: Why are they calculating ...
36 views

### Is an online “savings withdrawal” calculator a reasonable model for retirement investment draw downs?

I want to calculate a two-phase retirement, with Phase I being the period prior to filing for Social Security retirement benefits, and Phase II being the post-filing period. Is it reasonable to use ...
250 views

### Pay off student loans vs pay myself and try to get PSLF? (is my math right?)

I am trying to decide between paying off my student loans in 5 years vs attempting to quality for Public Service Loan Forgiveness (PSLF), which I could conceivably do in 5 years. My options are to 1) ...
65 views

### How does the Positive Volume Index (PVI) formula work?

I'm completely new to calculation of trading indicators and I can't understand this PVI formula: PVI = {yesterday’s PVI X [(today’s CP – yesterday’s CP) ÷ yesterday’s CP]} + yesterday’s PVI If I ...
67 views

### How to calculate repayments in order to pay off a personal loan by a certain date?

I have a small personal loan (\$3000 remaining). The current interest is about 15% (per year???, charged monthly) but I also have to pay a monthly service fee (\$10). My current weekly repayments are ...
69 views

### How are net income and yield calculated for margin trading?

You have purchased 150 shares at 10 each. You expect to sell these at 15 each. You only managed to sell 100. Out of your initial purchase price, 400\$ were borrowed. Brokerage fee= 2% for the ...
28 views

### Enhancement of the open source lib for calculation of IRR (internal rate rate)

I am cs student , and has been asked to enhance the documentation for open source lib finance.js for IIR (internal rate of return) for various industry Here I am trying to calculate IIR for the ...
113 views

### What formula can I use to calculate compounding interest with recurring investments?

Assume I am saving X dollars per year every year, and every year I earn 10 percent on what I saved the previous year. e.g. if I am saving 100 dollars every year I would see the trend: 100, 210, 331, ...
78 views

### Calculate percent of goal where start is not zero

How would I calculate the percent to a goal between two numbers where the starting number is not zero? for example: purchase price = \$10 target price = \$80 current price = \$61 What percent to \$80 ...
76 views

### Online portfolio return calculator [closed]

Is there a online calculator where I can punch in ETFs that I want in my portfolio and it shows the return over time? I want to add GLD, VOO, VGT to see what my return would have been and then ...
5k views

### Would the minimum payment or full CC amount be considered monthly debt?

Based on Is rent considered a debt? The question of: What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)? got me thinking. If you rack up \$...
230 views

### How do Ontarians calculate optimal RRSP contribution?

Pls see my dad in Ontario's facts. He maxed out his TFSA, and his annual pre-tax income (henceforward "APTI") is \$50K. CRA website shows his 2019 RRSP deduction limit is \$100K. If I understood this ...
65 views

### Profitability of Holding a Loan from Issue to Maturity

The loans that I invest in pay a fixed amount of money per month. A portion of it is principal and another portion of it is interest. As the loan matures, a smaller proportion of each payment is ...
47k views

### Calculate Future Value with Recurring Deposits

I am familiar with the formula for calculating FV and compound interest of a deposit, but I am wondering if there is a formula that will allow me to calculate how much money I will have after ...
87 views

### Does the amortizing payment on a loan depend on whether interest is calculated daily or monthly?

Assume two banks offer a \$100,000 mortgage at 6% annual interest for 30 years with payments due monthly. One bank assumes each month has 30 days. The other bank uses the actual number of days in ...
12k 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 ...
179 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 ...
73 views

### Why is this stock's P/E ratio so different from Price/EPS?

I was looking at Alibaba Group Holding Ltd ADR (BABA)'s P/E ratio of 28.55 from Morningstar. While looking at its financials, Morningstar says that its diluted EPS TTM is 26.41. But its stock price ...
2k views

### How to recalculate an amortization table after making a large payment?

I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated... My lender does not allow ...
28k views

### What is the formula for the monthly payment on an adjustable rate mortgage?

Can people tell me how monthly payments are calculated when a mortgage has an initial rate? What is the formula? I have seen online calculators but not formulae. My guess is: We assume that the ...
147 views

### What is an appropriate metric measure average annualized rate of return for an average investor?

Let us say an investor invests \$X per year for N years. Let us say the final portfolio value is \$Y. In this scenario, how should I measure a metric that quantifies "average annualized return"? I ...
23k views

### How do you calculate the P/E ratio by industry?

I would like to know how to calculate the P/E ratio by industry. On this website, it displays the P/E ratio for the current stock, the industry and the sector: FINANCIALS DTV.O ...
531 views

### Exchange rates - is my math correct here?

Using an online exchange rate calculator, and Numi (a calculator that does it as if it's written by hand, for Mac OS X) for my calculations, it says: 1 GBP in USD = \$1.32 1 USD in GBP = £0.76 Is ...
34 views

### Explanation of Macaulay duration for bonds?

I understand how to calculate duration but I'm a bit confused about what it actually tells me and how it is useful and I can't seem to find anything that tells me. If a bond has a maturity of 5 years ...
146 views

### Formula for retirement withdrawal amount same as principal decreases

I created a retirement calculator The idea is if you save enough you can so when you withdraw say 4% you don't eat too much into your savings. But based on my calculation 4% of 500000 is \$20k but ...
4k views

### How to calculate new price for reverse split?

I have the following position ABC 500 shares @ \$120.00 ABC is trading at \$15.00. \$60000 - \$7500 = -\$52500 ABC did a reverse split 1:5. An 80% decrease in shares. After the split, it is trading ...
349 views

### \$100 divided by 3: What happens to the \$0.01? [closed]

Frustrated with the current bookkeeping app I use, I've decided to start making my own with the intent to publish it. While I was on it, one thing that was immediately apparent is what happens to ...
63 views

### What is the formula to get the Interest percentage from Interest Rate?

What is the formula to get the Interest percentage from Interest Rate? Given : Principal Amount : \$1000 Interest Rate : \$1 / Month Number of payments : 10 What is the formula to fetch the ...
674 views

### Algorithm to calculate the Interest on Loan with a Balloon Payment

I am trying to understand the algorithm used by My Calculators.com - Balloon Payment Calculator If I enter the following details: Loan amount: 4556.75 Number of months: 5 Interest rate: 5.75% ...
7k views

### What are the standard industry practices or disclosures for computing compounded interest on retail deposit accounts in the United States?

I'm seeking to understand how my bank calculates the interest on my various deposit accounts (Money Market, Interest Checking, Savings, Certificate of Deposit) in order to simulate and predict it to a ...
39k views

### converting annual interest rate to monthly when compounding frequency known

Just like the title I'm looking for the formula to convert APR to monthly when I also know compounding frequency eg APR is 8% and being compounded daily what is the monthly interest rate I earn. Or ...
168 views

### How should I calculate how much my money is _grown_?

I invest in multiple streams - equities, mutual funds, bank deposits etc. Depending on the asset class, my rate of return is different, naturally. Some asset classes generate higher ROI (with higher ...
1k views

### A calculator that takes into account portfolio rebalancing? [closed]

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 \$10,...
102 views

### How does a bond's coupon rate differ from its market yield rate?

I'm trying to understand how bonds work and am confused by coupon rate vs market yield rate. Suppose company Foo issues a bond with a face value of \$1 million, a 4% annual coupon rate payable semi-...
306 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 (...
32k 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?