Financial Formulas and Financial Equations
Financial math has as its foundation many basic finance formulas related to the time value of money. In addition, particulars related to certain financial instruments (bonds for example) are calculated using derivatives of these basic formulas. Other formulas used in financial math are related to probability, randomness and statistical analysis.
The financial equations below are helpful as they are. However, using the financial formulas provided here, one may also generalize and calculate answers for even more complex financial problems.
Symbols and Variables in Financial Formulas
One important key to understanding formulas for financial math is knowledge of what financial symbols and variables represent. The chart of symbols (located at the right) offers an explanation of the financial variables used in the formulas provided below. |
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Calculate the Number of Payments
Convert Interest Rate Compounding Bases
Calculate Sinking Fund
Future Value Formulas
Calculate the Future Value of a Single Sum
Calculate the Future Value with Compounding
Calculate the Future Value of a Cash Flow Series
Calculate the Future Value of an Annuity
Calculate the Future Value of an Annuity Due
Calculate the Future Value of an Annuity with Compounding
Present Value Formulas
Calculate the Present Value of a Single Sum
Calculate the Present Value with Compounding
Calculate the Present Value of a Cash Flow Series
Calculate the Present Value of an Annuity with Continuous Compounding
Calculate the Net Present Value of a Cash Flow Series
Cash Flow Series Calculations
Calculate the Present Worth Cost of a Cash Flow Series
Calculate the Present Worth Revenue of a Cash Flow Series
Software for Creating Financial Formulas
The formulas displayed on this page were all created using MathCast, the open source equation editor, by Tom Chekam