Category
Economics & Finance
Economics and finance formulas and calculators for corporate finance and macroeconomic fundamentals used in business and investment decisions. Includes present value, interest rate, ROI, and economic growth equations.
60Formulas
2Subcategories
Updated Jul 2026
Corporate Finance
Times Interest Earned (Interest Coverage) Ratio
TIE = EBIT / Interest Expense
Corporate Finance
Cost of Equity (Gordon Growth / Dividend Discount Model)
Re = (D1 / P0) + g
Corporate Finance
Annuity Due Future Value
FV (due) = PMT * (((1+r)^n - 1) / r) * (1+r)
Macroeconomics
Fisher Equation (Real vs Nominal Interest Rate)
(1 + Nominal Rate) = (1 + Real Rate) * (1 + Inflation Rate)
Macroeconomics
Purchasing Power Parity (PPP) Exchange Rate
PPP Rate = Price of Good in Currency A / Price of Same Good in Currency B
Macroeconomics
Money Multiplier
Money Multiplier = 1 / Reserve Requirement Ratio
Macroeconomics
Real GDP Growth Rate
Growth Rate (%) = ((Real GDP_new - Real GDP_old) / Real GDP_old) * 100
Macroeconomics
Unemployment Rate
Unemployment Rate (%) = (Number of Unemployed / Labor Force) * 100
Macroeconomics
CPI Inflation Rate
Inflation Rate (%) = ((CPI_new - CPI_old) / CPI_old) * 100
Corporate Finance
Working Capital
Working Capital = Current Assets - Current Liabilities
Corporate Finance
Days Sales Outstanding (DSO)
DSO = (Accounts Receivable / Total Credit Sales) * Number of Days
Corporate Finance
Inventory Turnover Ratio
Inventory Turnover = Cost of Goods Sold / Average Inventory
Corporate Finance
Operating Margin
Operating Margin (%) = (Operating Income / Revenue) * 100
Corporate Finance
Gross Margin
Gross Margin (%) = ((Revenue - Cost of Goods Sold) / Revenue) * 100
Corporate Finance
Earnings Per Share (EPS)
EPS = (Net Income - Preferred Dividends) / Weighted Average Shares Outstanding
Corporate Finance
Return on Assets (ROA)
ROA (%) = (Net Income / Total Assets) * 100
Corporate Finance
Return on Equity (ROE)
ROE (%) = (Net Income / Shareholders' Equity) * 100
Corporate Finance
Debt-to-Equity Ratio
D/E = Total Liabilities / Shareholders' Equity
Corporate Finance
Quick Ratio (Acid-Test)
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Corporate Finance
Current Ratio
Current Ratio = Current Assets / Current Liabilities
Corporate Finance
Bond Yield to Maturity (Approximation)
YTM ≈ (Coupon + (Face Value - Price)/n) / ((Face Value + Price)/2)
Corporate Finance
Bond Price (Present Value of Cash Flows)
Price = Σ(Coupon / (1+y)^t) + Face Value / (1+y)^n
Corporate Finance
Discounted Payback Period
Discounted Payback = Time until cumulative discounted cash flows = Initial Investment
Corporate Finance
Payback Period
Payback Period = Initial Investment / Annual Cash Flow
Corporate Finance
Internal Rate of Return (IRR) — Two-Cash-Flow Approximation
IRR ≈ (FV/PV)^(1/n) - 1
Corporate Finance
Weighted Average Cost of Capital (WACC)
WACC = (E/V)*Re + (D/V)*Rd*(1-Tax Rate)
Corporate Finance
Amortization Remaining Loan Balance
B = P*(1+r)^p - PMT*(((1+r)^p - 1)/r)
Corporate Finance
Present Value of an Annuity
PV = PMT * ((1 - (1+r)^-n) / r)
Corporate Finance
Future Value of a Single Sum
FV = PV * (1+r)^n
General
Emergency Fund Target
Emergency Fund Target = Monthly Essential Expenses * Number of Months (typically 3-6)
General
Net Worth Calculation
Net Worth = Total Assets - Total Liabilities
General
50/30/20 Budget Rule
Needs = 0.50 * Income, Wants = 0.30 * Income, Savings = 0.20 * Income
General
Take-Home Pay (Simplified)
Take-Home Pay = Gross Pay - (Taxes + Deductions)
General
Salary Raise Percentage
Raise (%) = ((New Salary - Old Salary) / Old Salary) * 100
General
Tip Calculation
Tip = Bill Amount * Tip %
General
Credit Card Minimum Payment Interest Cost
Monthly Interest = Balance * (APR / 12)
General
Credit Utilization Ratio
Utilization (%) = (Total Credit Card Balances / Total Credit Limits) * 100
General
Debt-to-Income (DTI) Ratio
DTI (%) = (Total Monthly Debt Payments / Gross Monthly Income) * 100
General
Sales Tax Calculation
Total Price = Price * (1 + Tax Rate)
General
Discount Price Calculation
Sale Price = Original Price * (1 - Discount %)
General
Markup Percentage
Markup (%) = ((Selling Price - Cost) / Cost) * 100
General
Profit Margin
Profit Margin (%) = (Net Profit / Revenue) * 100
Macroeconomics
Currency Conversion
Converted Amount = Original Amount * Exchange Rate
Macroeconomics
Inflation-Adjusted (Real) Value
Real Value = Nominal Value / (1 + Inflation Rate)^n
Corporate Finance
Retirement Withdrawal Rate (4% Rule)
Annual Withdrawal = Portfolio Value * 0.04
Corporate Finance
Loan-to-Value (LTV) Ratio
LTV (%) = (Loan Amount / Appraised Property Value) * 100
Corporate Finance
Dividend Yield
Dividend Yield (%) = (Annual Dividend per Share / Share Price) * 100
Corporate Finance
Price-to-Earnings (P/E) Ratio
P/E = Market Price per Share / Earnings per Share
Corporate Finance
Compound Annual Growth Rate (CAGR)
CAGR = (Ending Value / Beginning Value)^(1/n) - 1
Corporate Finance
Return on Investment (ROI)
ROI (%) = ((Gain - Cost) / Cost) * 100
Corporate Finance
Break-Even Point (Units)
Break-even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Corporate Finance
Effective Annual Rate (EAR)
EAR = (1 + r/n)^n - 1
Corporate Finance
Rule of 72 (Doubling Time)
Years to Double ≈ 72 / Interest Rate (%)
Corporate Finance
Present Value of a Single Sum
PV = FV / (1+r)^n
Corporate Finance
Loan/Mortgage Monthly Payment
M = P * (r*(1+r)^n) / ((1+r)^n - 1)
Corporate Finance
Simple Interest
I = P * r * t
Macroeconomics
Capital Asset Pricing Model
Rₐ = R_f + β(R_m − R_f)
Macroeconomics
GDP (Expenditure Approach)
GDP = C + I + G + (X − M)
Corporate Finance
Net Present Value
NPV = Σ Cₜ/(1+r)ᵗ − C₀
Corporate Finance
Compound Interest
A = P(1 + r/n)^(nt)