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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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18
votes
3answers
38k views

If I were to buy something a day before my due date for my credit card bill, would I be charged interest?

First of all, I am a resident of Canada. I am new to credit cards, so I hope my question makes sense. I've had my card for a few months ago and I've always paid the balance in full by the time the ...
90
votes
11answers
65k views

15 year mortgage vs 30 year paid off in 15

I've found similar questions, but they all seem to focus on a preexisting 30 year mortgage and whether or not it makes sense to refinance to a 15. My question is a bit different. I have not yet ...
26
votes
4answers
41k 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 ...
12
votes
2answers
2k views

Does the history of credit utilization affect FICO score?

Most people are aware that the debt to credit limit ratio is a vital part of the FICO score. The FICO score is updated every time new information is received by the credit bureaus. However, is it ...
1
vote
1answer
2k views

Seasonal Loan Amortization

Hi I can compute a Basic Loan Amortization Schedule, But now I'm trying to Calculate a Seasonal Loan Amortization Schedule . So for example A loan starts at January And Will go on for 3 years, with ...
11
votes
2answers
439 views

How do I account for newly added money when computing my rate of return?

I have a simple spreadsheet where I track the balance in my investment account. What should I do to handle new deposits in the account? For example: End of Day 1: balance = $100 End of Day 2: $...
2
votes
3answers
995 views

Calculating interest accrued with extended Initial Payment Date

I'm wondering how do I calculate the interest accrued if the intervals aren't perfect. For example Principal - $100,000 Interest - 8% Compounding monthly Disbursal Date - January 1st, 2016 Initial ...
9
votes
3answers
2k views

Overpaying on mortgage - How is term reduction calculated?

Just for some example figures: Original Term: 25 Years Loan Amount: £100,000 Interest rate: 2% I'm trying to make an excel table which keeps track of my mortgage payments including overpayments. ...
15
votes
2answers
42k 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 A:...
8
votes
2answers
27k 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 ...
37
votes
6answers
48k views

Should I pay an extra $100 every month on my mortgage or pay $1200 extra every year at the beginning of the year?

I can pay $1200 extra once a year or $100 every month - which is better? The first one does sound better, but for a 30 year mortgage, is it that significant? Say the mortgage is for $200,000. ...
6
votes
1answer
496 views

How do I determine how long it will take to pay off my all my loans?

Right now I have a spreadsheet with the loans I have, the interest rates the are each at, and how much I am putting toward each in monthly payments. I then calculate how long each loan will take to ...
4
votes
3answers
6k views

Loan repayment calculation and monthly compounding interest problem

I need to write a mock up application that returns a quote to potential borrowers. The specification says that "The monthly and total repayment should use monthly compounding interest". Program ...
4
votes
4answers
24k views

Is there a mathematical formula to determine a stock's price at a given time?

I have been trying to find exact information on how stock prices are determined but still I haven't found any exact mathematical formulas how it happens. Wikipedia states: When prospective buyers ...
2
votes
8answers
10k views

Help me understand the oddity of percentage gains and losses?

If you start with $100K, and you get a 50% gain, it's $150K. Then, you get a 50% loss: now it's $75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss). So, 50% up then ...
11
votes
1answer
1k views

Calculate Income Tax amount of UK Salary

I've recently been trying to calculate different take home amounts from different salaries, and have ended up getting confused over how the different tax brackets work. If I try to calculate the ...
4
votes
5answers
9k views

Time-Weighted Rate of Return & Money-Weighted Rate of Return

Background I am trying to figure out the computational difference between Time-Weighted Rate of Return (TWRR) and Money-Weighted Rate of Return (MWRR). Let's say, I have a portfolio looking like ...
4
votes
3answers
601 views

Credit card grace period for pay, wait 1 day, charge?

Does a credit card grace period apply in this situation: March 1: I charge $1000 to my card. March 8: My billing cycle ends (ie, this my card's closing date). My due date is March 28th. March 9: ...
3
votes
3answers
14k views

How to calculate Social Security benefits if retiring before the early Social Security age?

How can I calculate my Social Security if I retire before my early Social Security age? I tried to use the official website's calculator, but it required entering too much data, and the website ...
2
votes
2answers
910 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% ...
-1
votes
2answers
94 views

How do I equally disburse appreciating assets over a fixed timeframe?

First, I apologize if the title is confusing or if there is a better wording. I am unfamiliar with many finance terms, so there may be something accurately describes my problem. I am trying to ...
-2
votes
1answer
117 views

How to calculate the future expenditure of education :

Suppose the following: if a child's age is 2 years today and he/she will go to college at the age of 15 years for 2 years(duration of education) and for which Cost incurred P.A. as on today (Rs.) ...
9
votes
2answers
927 views

How does compounding of annual interest work?

I have tried reading up on it, but I just find it confusing. Apparently, if you started investing $150/month at a 15% annual return and kept reinvesting the profits, here is what you would have ...
7
votes
2answers
1k views

How does a monthly inflation rate work?

I'm struggling to understand the following inflation numbers for South Africa given here: http://www.tradingeconomics.com/south-africa/inflation-cpi Year Month Inflation 2015 Jun 4.7 2015 Jul ...
9
votes
2answers
2k views

What is the formula for calculating the total cost of a loan with extra payments towards the principal?

If I have a 30 year mortgage of $200,000 with an APR of 4.446% I can calculate how much my monthly payment will be and how much the total cost of the loan will be. But what if I have an extra $200 to ...
8
votes
2answers
1k views

Credit card interest calculator with grace period & different interest rate calculation methods?

Is there an (ideally online) credit card interest calculator that includes grace periods and lets you choose the interest calculation method (eg, "adjusted balance", "average daily balance", "two-...
7
votes
2answers
1k views

Calculating savings from mortgage interest deduction vs. standard deduction?

I've read just about anything I can find on comparing cash-flow between owning a house versus renting. One new thing popped into my head yesterday, and I can't shake the feeling that it's an obvious ...
4
votes
3answers
2k views

What's the correct formula to calculate my monthly wage (deducting UK Income Tax and National Insurance)?

For a given salary, how do I work out what would be paid into my bank each month? The Income Tax part is explained for the main part in this question, but I can't make sense of the National Insurance ...
12
votes
3answers
45k 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 ...
11
votes
4answers
69k views

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

If I meet 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 ...
6
votes
4answers
6k views

How do I calculate the principal paid down on a mortgage?

I'm looking for an equation to find out the current principal on a mortgage. I have the following variables: n periods monthly payment amount interest rate of mortgage I'd like to know how much I'd ...
6
votes
2answers
4k views

How can I calculate a “running” return using XIRR in a spreadsheet?

I should say that I'm not married to XIRR, I just want to calculate the return on a running basis in a column next to dates, deposits and balances. Here's a screenshot of a simplified spreadsheet in ...
5
votes
2answers
626 views

Calculating the most optimal way to pay off credit cards

I have 3 credit cards which I am slowly paying them off. Card# Balance Monthly Interest Months to pay of Minimum Payment at current rate Payment 1 $...
4
votes
2answers
31k 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?
2
votes
2answers
8k views

How do I calculate the quarterly returns of a stock index?

I was reading an article and it stated something along the lines of (not accurate figures): Quarter | Stock Index % Change In Quarter Sep 2011 | 5.21 Dec 2011 | 4.69 Mar 2012 | 3.20 June 2012 | -...
2
votes
5answers
5k views

How do I calculate a simple moving average for stock prices?

To give a little context, this is for a programming assignment at school so the simplest form of proper moving average is all that's needed. I've searched around and seen the summation formulas and ...
2
votes
2answers
6k views

How to calculate the number of months until a loan is paid off (given principal, APR and payment amount)?

Does anyone know what formula they use for this When will you be debt-free? calculator? I want to put it in a Google Spreadsheet, but I can't find a payments-to-debt-free formula using my Google ...
0
votes
1answer
605 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% ...
10
votes
2answers
3k views

Continuous compounding in practice

A common explanation for the mathematical constant e (2.71828...) is that it is the factor by which an investment would grow at 100% interest rate over a period if it is continuously compounded. In ...
7
votes
3answers
2k views

What is the “rule of 70” or “rule of 72” with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
7
votes
8answers
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 $...
7
votes
3answers
5k views

Is interest of credit cards caculated based on the amount unpaid within the grace period?

From Wikipedia if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid,...
5
votes
4answers
7k 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 ...
5
votes
2answers
22k views

How to calculate total interest paid on a decreasing balance?

I am trying to come up with the equation which will give me the total interest to be paid on something given a fixed interest rate with a fixed payment for a given period of time. The interest is ...
4
votes
1answer
88 views

Should you work out the yield on property or shares against the purchase price, or the current market price?

In What is a good rental yield?, there's some discussion about whether you should calculate yield by dividing the original purchase price, or the current market price. Which is the correct definition,...
4
votes
4answers
3k views

How to calculate credit card interest with respect to grace period transactions?

If my credit card currently has a $0 balance, and I make a transaction and pay it back within 25 days, I won't pay any interest, even if I had a balance and was paying interest previously. Is that ...
4
votes
2answers
1k views

How does the Dow Jones Industrial Average (DJIA) divisor change to account for dividends?

The DJIA is a price-weighted index tracking of 30 companies chosen by the Dow Jones Company. It takes the current share price of these 30 stocks and divides by a specific number called the divisor. ...
4
votes
2answers
140 views

Daily Interest Monthly Compounding Multiyear

I downloaded the Excel spreadsheet mentioned in the accepted answer to this question: Daily interest calculation combined with monthly compounding: Why do banks do this, and how-to in Excel? It was ...
3
votes
1answer
128 views

How can I calculate the annualised growth rate for an irregular investment?

I have a portfolio, which I invest in monthly. Depending on my circumstances, the monthly amount changes from time to time (perhaps every two years or so). I want to calculate the annualised growth ...
2
votes
5answers
3k views

Calculating interest for a loan made for a friend on a credit card

I have a credit card with a 16.5% APR. I had $2500 on the card already. I made a purchase for a friend of $3700, who has just paid me back after 11 months. How can I calculate the interest he would ...