To do so, you take your stock's market price, deduct that to its purchase price then divide it by its purchase price again. Calculating Gains and Lossesįor individuals who invested in blue-chip stocks, you can calculate how much you will gain and loss in your investment. To calculate your leverage ratio, you take your debt payments divided by your income.
Good leverage should be proportioned with your income, otherwise, you would get in trouble. "Leverage" or borrowed capital is like debt that you can buy things with like a house.
Leverage Ratio using incomeĪnother simple financial formula that you can do on a basic and a financial calculator is calculating the leverage ratio using income. In fact, to calculate this, you don't even need a financial calculator, just add and subtract your income and expenses. What you need to do is take your income and subtract that with your expenses the result is your cash flow. Here are some basic finance formulas that you can do with a financial calculator: Cash FlowĬalculating for your cash flow is simple. What can you do with a Financial Calculator?Īside from doing basic math, financial calculators can solve a lot of equations related to finance such as your cash flow, leverage ratio, your gains and losses, and so much more. If you are a business and finance major or a professional, a good financial calculator can go a long way. Though not as popular as the 10-B in business schools, the 12-C is mostly used by seasoned veterans in the financial world. Another from Hewlett-Packard or HP is the HP-12C. It's older brother, the HP 10-BII+ has more advanced functions such as probability distribution. The most popular financial calculator is the HP 10-B which is widely used in many business schools as well as in the finance industry. Some calculators indicate I/YR or iĪ lot of experts recommend the HP 12-C, HP 10-B, and the TI BA II when it comes to financial calculators. Found in the first or second row of your financial calculator, these set of keys are used in almost financial formulas that you would ever encounter. What makes financial calculators unique is their special set of keys that would help you out. While some financial calculators may be different in terms of sophistication and calculating power, their purpose is basically the same. If you want to be ahead of your finances, a financial calculator would be an efficient device that you should always have. Like a set of standard calculators, financial calculators are also programmable, in order to adapt to functions unique only to the user.
What is a Financial CalculatorĪ financial calculator is a type of calculator that helps business professionals with stand-alone keys and functions that would provide direct numbers that you need. It is a useful tool that provides you with concrete numbers that could be valuable in your wealth management. You can calculate investment, interest rates or time periods in which are not provided in interest tables. There are a lot of ways you can use a finance calculator other than adding, subtracting, and dividing. For modern day accountants, brokers or anybody with a background in finance, a financial calculator is a helpful tool that would go a long way.
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