# 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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### 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 ...
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?
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 ...
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 ...
2k views

### Does financing a portfolio on margin affect the variance of a portfolio?

For example, if the portfolio is financed with 50% margin, does it affect the portfolio variance?
8k views

### What's the beta of U.S. treasury bills?

Is it zero? My reference equation is: Bi = σim / σm2 Is the top sigma of im considered to be zero, since treasury bills have a fixed payout? If not, how do you suggest ...
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 ...
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. ...
3k views

### Should I pay off the credit cards now or do the monthly payments thing?

I have 3 credit cards with a total balance of about \$36k. Two of the cards are at 2% and the last one is at 0%. With the current payment structure, I'll be debt free in 25 months. I recently came ...
2k views

### Discussing stock and stock index movement: clarifying percentage vs. points?

I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following: "NASDAQ was down X points today ...
2k views

### Discussing real estate appreciation: Compound vs. simple interest?

When people say real estate has appreciated 8 % over the past 5 years, do they mean 8 % compounded annually? or simple interest annually?
630 views

### How to calculate the market capitalization (fair market value) of the Metropolitan Transportation Authority of New York?

I'd like to calculate the fair market capitalization of the Metropolitan Transportation Authority of New York, or learn how to do so of any comparable public interest corporation (ie an entity without ...
2k views

### How is the adjusted family net income calculated for the Ontario Sales Tax Transition Benefit (OSTTB)? What is included in that adjustment?

How is the adjusted family net income calculated for the Ontario Sales Tax Transition Benefit (OSTTB)? What is included in that adjustment?
252 views

### How to arrive at the fee-adjusted APR (accounting for balance transfer fee, but not inflation)?

I'm trying to figure out the fee-adjusted interest rate paid when incurring a balance transfer fee on a loan, not accounting for inflation. If the APR is 4%, the loan 5000, the transfer 2% and you ...
629 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 \$...
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 ...
8k views

### How can I calculate how much tax I will pay

I'm a consultant thinking of taking a full time salary job. I live in WA state and have a family. How can I calculate how much tax (federal, social security, medicare) I will pay? I've used http://...
620 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: ...
546 views

### How is the 6th year on a 5/1 ARM calculated?

Given a 5/1 ARM for a \$350,000 loan at a rate of 2.875%: After 5 years of paying at 2.875%, let's say the balance is \$310,000. On the 6th year, the first adjustment kicks in an kicks the rate up 1% ...
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-...
4k views

### How to calculate incremental interest rate for home refinancing?

Summary: When you refinance your house and borrow more money, how to calculate the incremental interest rate you pay? I currently owe \$95K on my house, 4.75% interest rate, \$510 monthly payment (...
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 ...
529 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?
552 views

### Calculating fair value of an oanda.com box option

How do I calculate the theoretical "fair value" of an oanda.com box option? More specifically, how do I calculate the probability that a given FOREX parity will enter a given range in a given period ...
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 ...
10k views

### Formula for calculating real cost of a deductible expense

Nice round numbers: say I perform a job that gets \$1000 gross (call this g) in which I incur \$100 in expense (call this e). The expense is fully deductible. Assume my marginal tax rate is 25% (call ...
310 views

### If you owe tax, how does the IRS failure-to-file penalty work?

If you owe tax, how does the IRS failure-to-file penalty work?