# 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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### Calculate the deposit on a loan when the monthly payment, interest rate, and balloon are known

I am looking into PCP finance for a car and I have found estimates where I enter a term and a deposit, and am given a monthly payment for the loan. Some sites (BMW for example) will let you enter a ...
81 views

### IRR calculation with Initial Investment disbursed on two years

In my case, I think: Numbers say more than words. So, I've simplified the financial situation in this image: Here is the Excel file. How to calculate the Internal Rate of Return (IRR) with such a ...
65 views

### Not understanding the calculations done in the book

I was reading "The Intelligent Investor by Benjamin Graham" and came across a series of calculations that I'm not getting as to how it has been arrived at. I'm quoting the entire text from ...
67 views

### When calculating NPV, why is it wrong to increase the discount rate to compensate for risk?

I am calculating the Net Present Value (NPV) for my investments. I used a higher discount rate for the more risky investments. However, the "Common pitfalls" section of the Net present value ...
64 views

### Calculating interest and Principal Paid using TI-84

How do I calculate the net quantity of interest on a loan, and the net quantity of the principal on the loan, that I have paid off after a given number of payment periods in the finance app on a TI-84 ...
2k views

### Inflation and the current value of my dollar

I am trying to figure out the value of my \$100 with a hypothetical 2% constant inflation rate after 30 years. Here is the scenario: suppose I have \$100 that laying under my bed and the hypothetical ...
286 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) ...
680 views

### Correct calculation for determining real business book value per share?

I'm trying to calculate the real value of a business and, as an example, I picked Netflix. From their latest financial statements I can see that: Assets value is: \$3,065,709,000 Liabilities value ...
55 views

### Find ending balance given return rate and amount added each year

If I have an investment that grows 10% per year, and every year I add an amount, is there a formula that can be used to find my ending balance after n years? The following demonstrates this: year 0: ...
2k 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 ...
25 views

### Interpreting bank's calculation of interest: gross, net, and what the bank pays

I cannot understand how my bank calculates the interest. Here is what the system shows when I invest 175,000 pesos (it's small money in dollars): Investment instrument: PAYMENT AT MATURITY Investment ...
64 views

### How to calculate a loan constant payment (like PMT) but extra double paying (without interest) twice a year

This is my first post in this community, already tried to find my answer, and didn't succeed :(. I'm working a way to understand the formula behind a loan that allows the client to extra pay the same ...
45 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 ...
77 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 ...
419 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 ...
34 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% ...
87 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 ...
287 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? ...
63 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 ...
78 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% ...
121 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 ...
43 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 ...
53 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 ...
51 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 ...
585 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 ...
55 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 ...
45k 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 ...
37 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 ...
72 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 ...
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 ...
128 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, ...
79 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 ...
81 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 \$...
262 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 ...
66 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 ...
49k 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 ...
88 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 ...
13k 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 ...
190 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 ...
3k 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 ...
29k 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 ...
150 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 ...
25k 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 ...
564 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 ...
156 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 ...
5k 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 ...
352 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 ...