Finance Formulas
Essential financial formulas for interest, investment returns, profit margins, and business analysis.
Master the math behind smart money decisions.
Break-Even Point Formula
Calculate the break-even point with BEP = Fixed Costs / (Price - Variable Cost). Find how many units you need to sell to cover all costs.
Compound Interest Formula
Calculate compound interest with the formula A = P(1 + r/n)^(nt). Learn how your money grows over time with interest compounding.
Debt-to-Income Ratio Formula
Calculate your debt-to-income ratio with DTI = (Monthly Debt / Monthly Income) × 100. Understand your financial health for loan approvals.
Future Value Formula
Calculate future value with FV = PV × (1 + r)^n. Find out how much your investment will be worth at a future date.
Present Value Formula
Calculate present value with PV = FV / (1 + r)^n. Determine what a future sum of money is worth in today's dollars.
Price Elasticity of Demand Formula
Calculate price elasticity of demand with PED = (% Change in Quantity) / (% Change in Price). Measure how sensitive demand is to price changes.
Profit Margin Formula
Calculate profit margin with (Revenue - Cost) / Revenue × 100. Understand how much profit your business keeps from each dollar of sales.
Return on Investment (ROI) Formula
Calculate ROI with the formula (Net Profit / Cost) × 100. Measure the profitability and efficiency of any investment.
Rule of 72 Formula
Use the Rule of 72 to estimate how long it takes to double your money. Years to Double = 72 / Interest Rate. A quick mental math shortcut for investors.
Simple Interest Formula
Calculate simple interest with the formula I = Prt. Learn how basic interest works on loans and investments without compounding.