Finance Finance Calculator

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finance finance calculator
Calculate Loan Payment (PMT)Calculate Future Value (FV)Calculate Present Value (PV)
Result Analysis:

Calculated Value: $ 0.00
function updateLabels(){var mode=document.getElementById('calc_type').value;if(mode==='loan'){document.getElementById('label1′).innerHTML='Loan Amount (P): $';document.getElementById('label3′).innerHTML='Term (Years):';document.getElementById('resLabel').innerHTML='Monthly Payment:';}else if(mode==='fv'){document.getElementById('label1′).innerHTML='Present Value (PV): $';document.getElementById('label3′).innerHTML='Investment Period (Years):';document.getElementById('resLabel').innerHTML='Future Value:';}else{document.getElementById('label1′).innerHTML='Future Value (FV Target): $';document.getElementById('label3′).innerHTML='Years to Wait:';document.getElementById('resLabel').innerHTML='Present Value Needed:';}}function calculateFinance(){var type=document.getElementById('calc_type').value;var v1=parseFloat(document.getElementById('input1').value);var v2=parseFloat(document.getElementById('input2').value)/100;var v3=parseFloat(document.getElementById('input3').value);var res=0;var extra="";if(isNaN(v1)||isNaN(v2)||isNaN(v3)){alert('Please enter valid numerical values');return;}if(type==='loan'){var ratePerMonth=v2/12;var months=v3*12;res=v1*(ratePerMonth*Math.pow(1+ratePerMonth,months))/(Math.pow(1+ratePerMonth,months)-1);var totalPaid=res*months;var totalInterest=totalPaid-v1;extra="Total Repayment: $"+totalPaid.toFixed(2)+" | Total Interest: $"+totalInterest.toFixed(2);}else if(type==='fv'){res=v1*Math.pow(1+v2,v3);extra="Interest Earned: $"+(res-v1).toFixed(2);}else if(type==='pv'){res=v1/Math.pow(1+v2,v3);extra="Total Growth Required: $"+(v1-res).toFixed(2);}document.getElementById('resultValue').innerHTML=res.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});document.getElementById('extraInfo').innerHTML=extra;document.getElementById('answer').style.display='block';}

Calculator Use

The finance finance calculator is a versatile tool designed for individuals and professionals who need to solve time-value-of-money problems. Whether you are looking to calculate a monthly mortgage payment, determine how much your savings will grow over time, or find the present value of a future sum, this tool provides precise results instantly.

By toggling between the different calculation modes, you can handle various financial scenarios ranging from personal loans to long-term investment planning.

Loan Amount / Principal
The initial sum of money borrowed or invested before interest begins to accrue.
Annual Interest Rate
The nominal yearly interest rate (APR) expressed as a percentage. The calculator automatically adjusts this for monthly or annual compounding depending on the mode.
Term (Years)
The duration of the financial arrangement in years. For loans, this determines the amortization period.

How It Works

Financial math relies on the principle that money today is worth more than the same amount in the future. The finance finance calculator uses standard amortization and compounding formulas to bridge these values.

Loan Formula: PMT = P [ r(1+r)^n ] / [ (1+r)^n – 1 ]

  • PMT: Monthly payment amount.
  • P: Principal loan amount.
  • r: Monthly interest rate (Annual Rate / 12).
  • n: Total number of months (Years × 12).

Calculation Example

Example: Suppose you take out an auto loan for $25,000 at an annual interest rate of 4.5% for a term of 5 years. You want to find your monthly payment.

Step-by-step solution:

  1. Principal (P) = $25,000
  2. Annual Rate = 4.5%, so monthly rate (r) = 0.045 / 12 = 0.00375
  3. Term (n) = 5 years × 12 months = 60 months
  4. Apply Formula: PMT = 25000 [ 0.00375(1.00375)^60 ] / [ (1.00375)^60 – 1 ]
  5. Result = $466.07 per month

Common Questions

What is the difference between APR and Interest Rate?

The interest rate is the cost you pay each year to borrow the money, expressed as a percentage. The APR (Annual Percentage Rate) includes the interest rate plus other fees or costs involved in procuring the loan. For the most accurate finance finance calculator results, use the APR provided by your lender.

How does compounding frequency affect my savings?

Compounding refers to the process where the interest earned on an investment is reinvested to earn even more interest. The more frequently interest is compounded (e.g., daily vs. annually), the faster your money grows. This calculator assumes monthly compounding for loans and annual compounding for investment growth.

Can I use this for credit card debt?

Yes, you can use the loan payment mode to see how long it would take to pay off a credit card balance. However, keep in mind that credit cards often use daily compounding, so the actual results may vary slightly from this tool's monthly calculation.

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