Financial Calculator

THE ULTIMATE FINANCIAL CALCULATOR
Main Menu
Investment Valuation Rates of Return
Financial Statements Capital Budgeting
Time Value of Money Loans and Leasing
Copyright 1997 KMT Software, Inc. All Rights Reserved.
l
File: 246428081.xls.ms_office Copyright 1997 KMT Software, Inc. Printed: 10/4/2014
Investment Valuation
Basic Bond Valuation Price Earning Multiple
Book Value Constant Growth
Liquidation Value
Click a button above to select a Calculator worksheet.
Financial Statements
Liquidity Analysis Debt Ratios
Activity Ratios Profitability Ratios
Time Value of Money
PV - Single Amount FV - Single Amount
PV - Mixed Stream FV - Annuity
PV - Annuity Deposits to a Sum
Rates of Return
Rate to Meet a Goal Taxable Equivalent Rate
Real Rate of Return Effective Annual Rate
Holding Period Return Yield to Maturity
After Tax Return Expected Return (CAPM)
Capital Budgeting
Net Present Value Annualized Net Present Value
Internal Rate of Return Initial Investment
Payback Period
Loans and Leasing
Car Lease Payment Refinance Calculator
Affordable Auto Balloon Payment Loan
Simple Interest Loan Bi-Weekly Loan
Add-On Interest Loan Home Mortgage Affordability
Loan Pay-off Amount Home Eq. Loan Affordability
Loan Consolidation Personal Debt Safety Ratio
Basic Bond Valuation
Par Value of the Bond $1,000
Years to Maturity 10
Required Rate of Return 12.000%
Coupon Rate of Bond 10.000%
Payment of interest:
Annual Semi-annual
Value of the bond is: $887.00
l
DESCRIPTION
Use this worksheet to determine the value of a bond. If the
bond pays interest on a semi-annual basis (twice per year),
be sure to select the semi-annual option button.
Book Value
Total Assets $6,000,000
Total Liabilities $4,500,000
Number of Common Shares Outstanding 100,000
The book value per share is: $15.00
l
DESCRIPTION
Book value per share is the amount per common share
that would be received if all the firm's assets are sold for their
exact book (accounting) value and if the proceeds remaining
after all liabilities (and preferred stock) are satisfied are then
divided among the common stockholders.
Liquidation Value
Liquidation Value of Assets $5,250,000
Book Value of Preferred Stock $0
Number of Common Shares Outstanding 100,000
The liquidation value per share is: $7.50
l
DESCRIPTION
The liquidation value per share is the amount per common
share that common stockholders will receive upon liquidation
(selling off of assets) of the company. The calculation assumes
payment of all liabilities and preferred stock.
Price/Earnings (P/E) Multiple
Average P/E Ratio for Firms in the Industry 7.0
Earnings per Share $2.60
The value per share is: $18.20
l
DESCRIPTION
The price/earnings multiple approach uses an average P/E ratio
to find a quick estimate of a company's value per common
share of stock.
Constant Growth
Estimated Dividend per Share $1.50
Expected Annual Growth Rate of Dividends 7.00%
Investor's Required Rate of Return 15.00%
The value per share is: $18.75
l
DESCRIPTION
The constant growth model assumes that dividends will grow
at a constant annual rate.

Liquidity Analysis and Ratios
Net Working Capital
Current Assets $1,223,000
Current Liabilities $620,000
The net working capital is: $603,000
Current Ratio
The current ratio is: 1.97
Quick Ratio
Inventory $289,000
The quick ratio is: 1.51
l
DESCRIPTION
Liquidity refers to the ease with which a firm can pay its bills.
The three basic measures of liquidity are net working capital,
the current ratio, and the quick (acid-test) ratio.
Activity Ratios
Inventory Turnover
Cost of Goods Sold $2,088,000
Inventory $289,000
The inventory turnover is: 7.22
Average Collection Period
Accounts Receivable $503,000
Annual Sales $3,074,000
The average collection period is: 58.91
Fixed Asset Turnover
Sales $3,074,000
Net Fixed Assets $2,374,000
The fixed asset turnover is: 1.29
Total Asset Turnover
Sales $3,074,000
The total asset turnover is: 0.85
l
DESCRIPTION
Activity ratios are used to measure the speed at which various
accounts are converted into sales or cash.
Debt Ratios
Debt Ratio
The debt ratio is: 45.7%
Debt-equity Ratio
Long-term debt $1,023,000
Stockholders' Equity $1,954,000
The debt-equity ratio is: 52.4%
Times Interest Earned
Earnings Before Interest and Taxes $418,000
Interest Expense $93,000
The times interest earned ratio is: 4.5
Fixed-payment Coverage Ratio
Earnings Before Interest and Taxes $418,000
Interest Expense $93,000
Principal Payments $71,000
Lease Payments $35,000
Total Preferred Dividends $10,000
Tax Rate 29%
The fixed-payment coverage ratio is: 1.87
l
DESCRIPTION
The debt ratios measure the degree of indebtedness and the
company's ability to pay debts.
Profitability Ratios
Gross Profit Margin
Sales $3,074,000
Cost of Goods Sold $2,088,000
The gross profit margin is: 32.1%
Operating Profit Margin
Operating profit $418,000
Sales $3,074,000
The operating profit margin is: 13.6%
Net Profit Margin
Net Profits After Taxes $231,000
Sales $3,074,000
The net profit margin is: 7.5%
Return on Assets (ROA)
The return on assets is: 6.4%
Return on Equity (ROE)
Stockholders' Equity $1,954,000
The return on equity is: 11.8%
Earnings Per Share (EPS)
Earnings Available to Common Stockholders' $221,000
Common Shares Outstanding 76,262
The earnings per share are: $2.90
Price/Earnings (P/E) Ratio
Market Price per Share of Common Stock $32.25
Earnings Per Share $2.90
The price/earnings ratio is: 11.1
l
DESCRIPTION
Profitability ratios allow you to evaluate the firm's earnings with
respect to a given level of sales, a certain level of assets, the
owners' investment, or share value.
Present Value - Single Amount
Future Amount (at the end of n periods) $1,700.00
Number of Periods (n) 8
Interest Rate Per Period (per n periods) 8.00%
The present value is: $918.46
Calculating an Interest Rate
Present Value $918.46
The interest rate per period is: 8.00%
Calculating the Number of Periods
The number of periods are: 8
l
DESCRIPTION
This worksheet allows you to calculate the present value
of a single (lump sum) future amount. It also allows you
to calculate the interest rate (or discount rate) if you know the
present value, future value, and number of periods. A third
calculation allows you to calculate the number periods if you
know the future value, present value, and rate per period.
Present Value of a Mixed Stream
Periodic Discount Rate
9.00%
Cash
Period (n) Flow
1 $400
2 $800
3 $500
4 $400
5 $300
6
7
8
9
10
The present value is: $1,904.76
l
DESCRIPTION
This worksheet allows you to calculate the present value of
a mixed stream of cash flows. A mixed stream of cash flows
shows no particular pattern.
Present Value of an Annuity
Choose one of the following options:
Ordinary Annuity Annuity Due
Payment Per Period $700.00
Number of Periods 5
The present value of the annuity is: $2,794.90
Present Value $2,794.90
Present Value $2,794.90
The number of periods is: 5
l
DESCRIPTION
This worksheet calculates the present value of an annuity.
Select the Annuity Due option button if you want to perform
calculations assuming that the cash flows occur at the beginning
of the period. The Ordinary Annuity assumes cash flows occur
at the end of the period.
You can use this worksheet to calculate the periodic interest
rate when you know the annuity payment, present value of the
annuity, and the number of periods.
You can also use this worksheet to calculate the number of
periods when the annuity payment, present value, and interest
rate are known.
Future Value - Single Amount
Compounding Choices (select one):
The future value is: $116.64
Calculating an Effective Interest Rate
Compounding Frequency (select one):
Nominal Interest Rate 8.00%
Number of Years 2
The effective rate per period (per n periods) is: 8.24%
Future Value $116.64
The number of periods is: 2
l
DESCRIPTION
This template allows you to calculate the future value of a
single (lump sum) future amount. It also allows you to calculate
the effective interest rate (or discount rate) if you know the
nominal interest rate, compounding frequency (per year) and
number of years. A third calculation allows you to calculate the
number of periods if you know the present value, future value,
and rate per period.
Future Value of an Annuity
Choose one of the following options:
Payment Per Period $1,000.00
Number of Periods 5
The future value of the annuity is: $5,750.74
Future Value $5,750.74
Future Value $5,750.74
The number of periods is: 5.00
l
DESCRIPTION
This worksheet calculates the future value of an annuity. Select
the Annuity Due option if you want to assume the cash flows
occur at the beginning of the period. The Ordinary Annuity (which
is the default) assumes cash flows occur at the end of the period.
You can use this worksheet to calculate the periodic interest rate
when you know the annuity payment, future value of the annuity,
and the number of periods.
You can also use this worksheet to calculate the number of
periods when the annuity payment, future value, and interest
rate are known.
Deposits to a Sum
Select the type of annuity:
Amount to be Accumulated $100,000
Number of years 10
Annual Interest Rate 9.00%
The periodic deposit is: $6,582.01
l
DESCRIPTION
This worksheet calculates the deposit per period needed to
accumulate some future amount.
Rate to Meet a Goal
Financial Goal $28,000
Number of Years Until Goal Achievement 12
Annual Deposit to Achieve Goal $1,500
Deposit Made at: Beginning of Period End of Period
The annual rate of return needed is: 6.63%
l
DESCRIPTION
This calculator computes the annual rate of return needed to
achieve a financial goal at some year in the future.
Real Rate of Return
Rate of Return 6.00%
Inflation Rate 4.00%
Marginal Tax Rate 28.00%
The real rate of return is: 0.32%
l
DESCRIPTION
Use this calculator to determine the real rate of return. The real
rate of return takes into account both inflation and taxes. It's
the rate of return after subtracting the taxes owed on the return
and the loss in purchasing power as a result of an increase in
the Consumer Price Index (CPI).
Holding Period Return
Current Income $10.00
Capital Gain (or loss) $8.00
Purchase Price $100.00
The holding period return is: 18.00%
l
DESCRIPTION
This calculator determines the total return earned from holding an
investment for a period of time.
After Tax Return
Taxable Return (%) 9%
Marginal Tax Rate 15%
The after tax return is: 7.65%
l
DESCRIPTION
Use this calculator to determine the after tax return on an
investment. The taxable return is the taxable annual yield from
the investment while the marginal tax rate is that of the investor.
Taxable Equivalent Rate
Tax Free Return (%) 7.65%
Marginal Tax Rate 15.00%
The taxable equivalent rate is: 9.00%
l
DESCRIPTION
Use this calculator to convert a tax free rate of return to a taxable
one. This is useful when comparing the return of a municipal
bond to that of a CD, T-bill, or any other taxable investment.
Effective Annual Yield on Investment
Contract Rate (Nominal Rate) 6%
Frequency of Compounding (Choose One):
The effective annual yield on investment is: 6.09%
l
DESCRIPTION
Use this calculator to convert the nominal or stated yield of an
investment to its actual yield, assuming a particular frequency
of compounding.
Yield to Maturity
Current Bond Price $1,040
Par Value of Bond $1,000
Coupon Rate 6.000%
Years to Maturity 16
The yield to maturity is: 5.637%
l
DESCRIPTION
Use this calculator to approximate the annual yield for a bond, if
held to its maturity date. The calculation takes into account any
gain to be realized from a discount and any loss attributed to a
premium.
Expected Return (CAPM)
(Capital Asset Pricing Model)
Risk Free Rate of Return 7.94%
Beta Coefficient 1.21
Return on Market Portfolio 13.30%
The expected rate of return is: 14.43%
l
DESCRIPTION
Use this calculation to estimate the expected rate of return on a
particular stock (equity) investment.
This expected rate of return calculation is based on the Capital
Asset Pricing Model. The risk free rate of return is the expected
return on a riskless investment -- such as a Treasury Bill.
The Beta coefficient is a statistic that is calculated and
published for publicly traded stocks and is available from
services such as Value Line Investment Survey. The return on
the market portfolio is the expected rate of return you could
achieve if you invested in the entire stock market.
Net Present Value
Initial Investment $45,000
Discount Rate 10%
Years Cash Flows
1 $28,000
2 $12,000
3 $10,000
4 $10,000
5 $10,000
6
7
8
9
10
11
12
13
14
15
The net present value is: $9,931
l
DESCRIPTION
This worksheet calculates the Net Present Value of an
investment. It is designed to work for any investment with up
to 15 years of cash flow.
Internal Rate of Return
Years Cash Flows
0 Initial Investment --> ($45,000)
1 $28,000
2 $12,000
3 $10,000
4 $10,000
5 $10,000
6
7
8
9
10
11
12
13
14
15
The internal rate of return is: 21.65%
l
DESCRIPTION
This worksheet calculates the internal rate of return (IRR) of
an investment. The initial investment should be entered as
a negative number since it is an outflow of cash.
Payback Period
Years Cash Flows
0 Initial Investment --> ($45,000)
1 $1,000
2 $1,000
3 $1,000
4 $1,000
5 $1,000
6 $1,000
7 $40,000
8 $6,000
9
10
11
12
13
14
15
The payback period is: 6.975
l
DESCRIPTION
This worksheet calculates the payback period. The payback
period is the number of periods (usually years) that it takes to
recover the initial investment from the operating cash flows.
Initial Investment $45,000
1 1,000 1 1,000 1
2 1,000 2 2,000 2
3 1,000 3 3,000 3
4 1,000 4 4,000 4
5 1,000 5 5,000 5
6 1,000 6 6,000 6
7 40,000 7 46,000 7
8 6,000 8 52,000 8
9 - 9 52,000 9
10 - 10 52,000 10
11 - 11 52,000 11
12 - 12 52,000 12
13 - 13 52,000 13
14 - 14 52,000 14
15 - 15 52,000 15
6 This finds the year that is equal to or less than the initial investment
6000 This looks up the amount accumulated for the year above
46000 This is the accumulation for the next year
40000 This is the cash flow for the year in which payback is achieved
$39,000
0.975
Payback 6.975
Annualized Net Present Value
Discount Rate 10.00%
Number of years 6
Years Cash Flows
0 Initial Investment enter as negative --> ($85,000)
1 $35,000
2 $30,000
3 $25,000
4 $20,000
5 $15,000
6 $10,000
7
8
9
10
11
12
13
14
15
The net present value is: $17,285
The annualized NPV is: $3,969
l
DESCRIPTION
This worksheet calculates the Annualized Net Present Value
(ANPV). The ANPV makes it possible to compare projects with
different life spans by converting the Net Present Value into an
amount per year.
Initial Investment
Cost of new asset $380,000
Installation costs $20,000
After-tax proceeds from sale of old asset $280,000
Tax on sale of present machine $84,160
Change in net working $17,000
The initial investment is: $221,160
l
DESCRIPTION
This worksheet calculates the initial investment -- the relevant
cash outflow required at time zero to implement a proposed
long-term investment.
Lease Payment
MSRP (sticker price) $20,000
Capitalized Cost (leasing price) $18,500
Cap Cost Reduction (down payment) $1,000
Lease Term (number of months) 24
Residual Factor (percentage of MSRP: see 1) 65.00%
Money Factor (converted interest rate: see 2) 0.00329
The depreciation fee is: $187.50
The lease fee is: $100.35
The monthly lease payment is: $287.85
l
DESCRIPTION
This calculator uses a formula that is utilized by car dealers and
leasing companies to calculate a monthly lease payment on a
new automobile.
(1) Note: Since the residual factor is determined by the leasing
company, you should attempt to get the actual value if possible.
As a rule of thumb, residual value can be estimated as follows:
.65 for 2 years
.57 for 3 years
.49 for 4 years
.41 for 5 years
The above factors are conservative estimates for new vehicles
with relatively low depreciation rates.
(2) Note: Since the Money factor is determined by the leasing
company, attempt to get the actual factor. You can estimate it
by dividing the current new car loan rate by 2400.
Affordable Automobile
Monthly Payment you can Afford $295
Loan Term (Years) 4
Annual Percentage Rate 8.00%
Down Payment $1,500
The price of the car you can afford is: $13,584
l
DESCRIPTION
Use this calculator to determine the price of an automobile that
you can afford. Begin by entering the monthly payment that suits
your budget. You may want to consider the rule of thumb that
your monthly installment payments should not exceed 15-20%
of your monthly take home pay.
Simple Interest Loan Payment
Loan Principal Amount $165,000
Loan Period in Years 30
KEY FIGURES
The monthly payment is: $1,154
The annual loan payments are: $13,844
The interest over the term of the loan is: $250,332
The sum of all payments is: $415,332
l
DESCRIPTION
Calculates the monthly loan payment necessary to amortize
a simple interest loan and other key loan figures.
Add-On Interest Payment
KEY FIGURES
The monthly payment is: $150
l
DESCRIPTION
This calculates the monthly payment and key figures for an add-on
interest loan.
Loan Pay-off Amount
Monthly Payment $1,182.08
Number of Payments Already Made 13
The pay-off amount is: $163,426
l
DESCRIPTION
This calculator helps you determine the amount of principal that
remains on a loan so that you can pay off or refinance the
loan balance.
Loan Consolidation
Debts to be Paid Off with New Loan:
Auto Loans $10,000
Credit Cards $6,000
Home Improvement $3,000
Vacation Loans $5,000
Other Loans $3,000
The consolidation loan amount is: $27,000
The monthly payment is: $541
l
DESCRIPTION
Use this calculator to determine the loan needed to consolidate
all your consumer loans into one loan and the monthly payment
required on that consolidation loan.
Refinance Calculator
New Loan Principal Amount $165,000
Current Monthly Payment $1,300.00
Points on the Refinance Loan 2
Other Estimated Closing Costs $2,000.00
KEY FIGURES
The new monthly payment is: $1,153.70
The monthly savings is: $146.30
The number of months to break-even is: 36
l
DESCRIPTION
Use this calculator to determine if a refinancing of a mortgage
makes sense. The number of months to break-even should be
compared to your estimate as to how long you will stay in the
house.
Balloon Payment
Amortization Period in Years 30
Years Till Balloon Payment 5
KEY FIGURES
The monthly payment is: $1,153.70
The balloon payment is: $156,118
l
DESCRIPTION
Use this calculator to compute the monthly payment and final
(balloon) payment on a balloon payment loan.
Bi-Weekly Loan
KEY FIGURES
The annual loan payments are: $8,801.52
The bi-weekly payments are: $338.52
l
DESCRIPTION
Use this calculator to compute a bi-weekly payment loan -- 26
payments per year.
Home Mortgage Affordability
Monthly Take-Home Pay $2,095
Gross Annual Income $30,000
Monthly Property Taxes $100
Monthly Home Owner's Insurance $50
Down Payment $20,000
Term (years) of mortgage 30
Interest Rate 13.00%
The affordable mortgage amount is: $52,726
The affordable home cost (35%) is: $72,726
The affordable home cost (2.5 x Income) is: $75,000
l
DESCRIPTION
This calculator determines the affordable mortgage and home
cost under two rules of thumb: 35% rule and 2 1/2 times
gross income rule.
The 35% rule assumes that the borrower cannot afford monthly
housing payments (Mortgage, Insurance, & Taxes) in excess
of 35% of monthly net take-home pay.
The 2 1/2 times gross income rule assumes that the maximum
house you can afford is 2 1/2 times your gross annual income.
$110.62
583.25
5.272557
52725.57
$72,726
Home Equity Loan Affordability
Borrower's Gross Monthly Income $4,000
Maximum % of Home Value Bank will Lend 80%
Minimum Monthly Payment as a % of Line 1.50%
Bank's Total Expenses (Affordability) Ratio 40%
Value of Home $175,000
First Mortgage Information:
First Mortgage Balance $50,000
Monthly Payment $500
Property Taxes (annual) $2,000
Homeowner's Insurance (annual) $400
Total Total
Current Monthly
Other Consumer Debts Balances Payments
Totals for All Consumer Debts $10,000 $550
The home equity is: $125,000
The credit line (ignoring affordability) is: $90,000
The affordable total monthly payments are: $1,600
The credit line for which you qualify is: $43,333
l
DESCRIPTION
Use this calculator to determine the home equity loan or line of
credit for which you qualify.
Personal Debt Safety Ratio
Monthly Take-home Pay $3,000
Enter total monthly payments for:
Credit Card Payments $100
Education Loan Payments $100
Automobile Loan Payments $200
Automobile Lease Payments $200
Home Equity Loan Payments $250
Other Consumer Loan Payments $30
The personal debt ratio is: 29.33%
l
DESCRIPTION
This calculator determines your personal debt ratio. As a rule of
thumb, the total monthly consumer debt payments should not
exceed 20% of your monthly take-home pay.

Financial Calculator

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Financial Calculator

Uploaded by

Copyright:

Available Formats

THE ULTIMATE FINANCIAL CALCULATOR

You might also like