# 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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930 views

### Unequal Loan Repayments

I am struggling with this question below. Present Value = 100000 Interest =12.25% per annum Number of months = 60 Payments =? Payments increase by 15% per annum. Calculate the PMT ...
1k views

### Calculating return on a series of stock positions with multiple uneven transactions

How can I calculate the return on a series of stock positions with multiple uneven transactions that I can compare to the equivalent buy and hold return over the same period? Random Example: Starting ...
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:...
360 views

### Pre- & post-tax calculations for comparing contribution amounts for traditional 401k vs. Roth IRA?

I currently have a rollover IRA which I no longer contribute to and a 401k which I currently contribute to. I would like a Roth account to be more diversified from a tax perspective. I currently put ...
12k 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 ...
1k views

### Division of Proceeds from sale of house

I bought a house ten years ago with a friend and I put down the 20% deposit. We have been fighting for years and recently decided to sell the house. We bought the house as joint tenants with right of ...
7k views

### Is the Social Security retirement benefit calculation based on the last 40 quarters, or overall?

Are Social Security payouts based on the last 40 quarters, or overall earnings? That is: If the last 40 quarters of my working career are lower than these past 40 quarters worth, how does this affect ...
2k views

### What is the formula for calculating the amount of money I end up with in a given period (salary and compounding effect)?

I'll give a concrete example (couldn't find a similar question): Let's say I have an amount of money M at time t = 0 (first month). Every month, I get a given amount (let's say constant) of R On my ...
174 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 (\$...
150 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 ...
273 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 ...
916 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% ...
7k 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 Personal ...
232 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, ...
3k 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 ...
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 ...
489 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 ...
234 views

### What is a 10 Year Treasury Note and How Can it be Used to Calculate the Intrinsic Value of a Stock?

I am a Canadian, and I am trying to use an "intrinsic stock value calculator" (found here: http://buffettsbooks.com/howtoinvestinstocks/course2/stocks/intrinsic-value-calculator.html#sthash.YmLme4uz....
1k 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 ...
5k 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 ...
3k 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 ...
9k 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 ...
1k 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 ...
730 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 ...
584 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 ...
768 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 ...
4k 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 ...
15k 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 ...
443 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 ...
176 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 ...
233 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 ...
174 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, ...
580 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 ...
2k 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 ...
128 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, ...
5k 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 taxable ...
165 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: -1000+500/(1+...
95 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 ...
611 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 ...
324 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?
5k views

### Is this the correct math for estimating federal taxes using marginal tax brackets?

(I updated this because I think I wasnt making myself clear in the first part of the question and I clarified what I'm trying to do. I'm just looking to use marginal tax brackets to derive a good ...
4k views

### How do we correctly sum up returns

Assume I have done 8 trades and calculated the profit (or loss) of each trade: Balance PnL 100 102 2.00% 105 2.94% 103 -1.90% 101 -1.94% 98 -2.97% 97 ...
117 views

### How should I include pension contributions in my UK Child Benefit calculations?

I'm using the gov.uk Child Benefit Tax Calculator and I don't know how I include my pension contributions in the "Pension contributions deducted from your pay" and "Pension contributions not paid from ...
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 ...
528 views

### What single metric is the ultimate measure of personal wealth? [closed]

More specifically, what is the single metric you would use to monitor personal wealth?
1k views

### How can I calculate yearly interest of my investment gain?

I'm trying to figure out the yearly interest of a potential investment. Lets say I invested \$10 000, 13 days later i cash out and I now have \$10 500. The interest here is 4,76% for 13 days. But can I ...
161 views

### How to calculate whether it's better to pay my education loan, or my home investment loan?

I have an education loan @ 11.5 % for 1,000,000. I can pay it in 3 years. I am planning to make an investment by buying a home @ 10.5% for 2,200,000. Term = 20 yrs. I am thinking if I sell the house ...
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?