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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.

61Formulas
2Subcategories
Updated Oct 2026
All (61) Corporate Finance (51) Macroeconomics (10)

Corporate Finance

Compound Interest Formula

A = P * (1 + r/n)^(n*t)

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

Corporate Finance

Emergency Fund Target

Emergency Fund Target = Monthly Essential Expenses * Number of Months (typically 3-6)

Corporate Finance

Net Worth Calculation

Net Worth = Total Assets - Total Liabilities

Corporate Finance

50/30/20 Budget Rule

Needs = 0.50 * Income, Wants = 0.30 * Income, Savings = 0.20 * Income

Corporate Finance

Take-Home Pay (Simplified)

Take-Home Pay = Gross Pay - (Taxes + Deductions)

Corporate Finance

Salary Raise Percentage

Raise (%) = ((New Salary - Old Salary) / Old Salary) * 100

Corporate Finance

Tip Calculation

Tip = Bill Amount * Tip %

Corporate Finance

Credit Card Minimum Payment Interest Cost

Monthly Interest = Balance * (APR / 12)

Corporate Finance

Credit Utilization Ratio

Utilization (%) = (Total Credit Card Balances / Total Credit Limits) * 100

Corporate Finance

Debt-to-Income (DTI) Ratio

DTI (%) = (Total Monthly Debt Payments / Gross Monthly Income) * 100

Corporate Finance

Sales Tax Calculation

Total Price = Price * (1 + Tax Rate)

Corporate Finance

Discount Price Calculation

Sale Price = Original Price * (1 - Discount %)

Corporate Finance

Markup Percentage

Markup (%) = ((Selling Price - Cost) / Cost) * 100

Corporate Finance

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)