FormulaBank

A quick reference library for important finance formulas used in investments, loans, deposits, and financial analysis.

Investment Planning

Future Value

FV = PV × (1 + r)^n

Find how much a present amount may grow over time.

Present Value

PV = FV / (1 + r)^n

Find the current worth of a future amount.

CAGR

CAGR = (FV / PV)^(1/n) − 1

Measure annualized growth over a period.

SIP Future Value

M = P × [((1 + i)^N − 1) / i] × (1 + i)

Estimate the future value of monthly investments.

EMI

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)

Calculate monthly loan repayment.

Compound Interest

A = P × (1 + r/m)^(m × n)

Calculate maturity value with compounding.

Simple Interest

SI = P × r × t

Calculate interest without compounding.

Inflation Adjusted Value

Future Cost = Current Cost × (1 + i)^n

Estimate how expensive something may become.

Debt-to-Equity Ratio

Debt-to-Equity = Total Debt / Shareholders' Equity

Measure financial leverage.

Current Ratio

Current Ratio = Current Assets / Current Liabilities

Measure short-term liquidity.

Return on Equity

ROE = Net Income / Shareholders' Equity

Measure profitability on owners' capital.

Net Profit Margin

Net Profit Margin = Net Profit / Revenue

Measure profit generated from sales.