Financial Calculator

File: document.xls Copyright © 1997 KMT Software, Inc. Printed: 05/03/2023

THE ULTIMATE FINANCIAL CALCULATORMain 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


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



BS01

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

DESCRIPTIONUse this worksheet to determine the value of a bond. If thebond pays interest on a semi-annual basis (twice per year),be sure to select the semi-annual option button.


BS02

Book ValueTotal 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

DESCRIPTIONBook value per share is the amount per common sharethat 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 thendivided among the common stockholders.


BS03

Liquidation ValueLiquidation Value of Assets $5,250,000 Total Liabilities $4,500,000 Book Value of Preferred Stock $0 Number of Common Shares Outstanding 100,000

The liquidation value per share is: $7.50 l

DESCRIPTIONThe 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 assumespayment of all liabilities and preferred stock.


BS04

Price/Earnings (P/E) MultipleAverage P/E Ratio for Firms in the Industry 7.0 Earnings per Share $2.60

The value per share is: $18.20 l

DESCRIPTIONThe price/earnings multiple approach uses an average P/E ratioto find a quick estimate of a company's value per commonshare of stock.


BS05

Constant GrowthEstimated 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

DESCRIPTIONThe constant growth model assumes that dividends will growat a constant annual rate.


FS02

Liquidity Analysis and RatiosNet Working CapitalCurrent Assets $1,223,000 Current Liabilities $620,000

The net working capital is: $603,000

Current RatioCurrent Assets $1,223,000 Current Liabilities $620,000

The current ratio is: 1.97

Quick RatioCurrent Assets $1,223,000 Inventory $289,000 Current Liabilities $620,000

The quick ratio is: 1.51 l

DESCRIPTIONLiquidity 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.


FS03

Activity RatiosInventory 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 TurnoverSales

$3,074,000 Total Assets $3,597,000

The total asset turnover is: 0.85 l

DESCRIPTIONActivity ratios are used to measure the speed at which variousaccounts are converted into sales or cash.


FS04

Debt RatiosDebt Ratio

Total Liabilities $1,643,000 Total Assets $3,597,000

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 RatioEarnings 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

DESCRIPTIONThe debt ratios measure the degree of indebtedness and the company's ability to pay debts.


FS05

Profitability RatiosGross 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)Net Profits After Taxes

$231,000 Total Assets $3,597,000

The return on assets is: 6.4%

Return on Equity (ROE)Net Profits After Taxes $231,000 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) RatioMarket Price per Share of Common Stock $32.25 Earnings Per Share

$2.90

The price/earnings ratio is: 11.1l

DESCRIPTIONProfitability ratios allow you to evaluate the firm's earnings withrespect to a given level of sales, a certain level of assets, the owners' investment, or share value.


TV01

Present Value - Single AmountFuture 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 RateFuture Amount (at the end of n periods) $1,700.00 Present Value $918.46 Number of Periods (n) 8

The interest rate per period is: 8.00%

Calculating the Number of PeriodsFuture Amount (at the end of n periods) $1,700.00 Present Value $918.46 Interest Rate Per Period (per n periods) 8.00%

The number of periods are: 8 l

DESCRIPTIONThis worksheet allows you to calculate the present valueof a single (lump sum) future amount. It also allows youto calculate the interest rate (or discount rate) if you know thepresent 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.


TV02

Present Value of a Mixed StreamPeriodic Discount Rate 9.00%

Cash Period (n)

Flow1 $400 2

$800 3

$500 4

$400 5 $300 67

89

10

The present value is: $1,904.76 l

DESCRIPTIONThis worksheet allows you to calculate the present value ofa mixed stream of cash flows. A mixed stream of cash flowsshows no particular pattern.


TV03

Present Value of an AnnuityChoose one of the following options:Ordinary Annuity Annuity Due

Payment Per Period $700.00 Number of Periods 5 Interest Rate Per Period (per n periods) 8.00%

The present value of the annuity is: $2,794.90

Calculating an Interest RatePayment Per Period $700.00 Present Value $2,794.90 Number of Periods (n) 5


Calculating the Number of PeriodsPayment Per Period $700.00 Present Value $2,794.90 Interest Rate Per Period (per n periods) 8.00%

The number of periods is: 5 l

DESCRIPTIONThis 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 beginningof the period. The Ordinary Annuity assumes cash flows occurat the end of the period.

You can use this worksheet to calculate the periodic interestrate when you know the annuity payment, present value of theannuity, and the number of periods.

You can also use this worksheet to calculate the number of periods when the annuity payment, present value, and interestrate are known.


TV06

Future Value - Single AmountCompounding Choices (select one):

Present Value $100.00 Number of Periods (n) 2Interest Rate Per Period (per n periods) 8.00%

The future value is: $116.64

Calculating an Effective Interest RateCompounding Frequency (select one):

Nominal Interest Rate 8.00%Number of Years 2

The effective rate per period (per n periods) is: 8.24%

Calculating the Number of PeriodsPresent Value $100.00 Future Value $116.64 Interest Rate Per Period (per n periods) 8.00%

The number of periods is: 2 l

DESCRIPTIONThis template allows you to calculate the future value of asingle (lump sum) future amount. It also allows you to calculatethe effective interest rate (or discount rate) if you know thenominal interest rate, compounding frequency (per year) andnumber of years. A third calculation allows you to calculate thenumber of periods if you know the present value, future value,and rate per period.


TV04

Future Value of an AnnuityChoose one of the following options:Ordinary Annuity Annuity Due

Payment Per Period $1,000.00 Number of Periods 5 Interest Rate Per Period (per n periods) 7.00%

The future value of the annuity is: $5,750.74

Calculating an Interest RatePayment Per Period $1,000.00

Future Value $5,750.74

Number of Periods (n) 5


Calculating the Number of PeriodsPayment Per Period $1,000.00

Future Value $5,750.74

Interest Rate Per Period (per n periods) 7.00%

The number of periods is: 5.00

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DESCRIPTIONThis worksheet calculates the future value of an annuity. Selectthe Annuity Due option if you want to assume the cash flowsoccur at the beginning of the period. The Ordinary Annuity (whichis the default) assumes cash flows occur at the end of the period.

You can use this worksheet to calculate the periodic interest ratewhen 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 interestrate are known.


TV05

Deposits to a SumSelect the type of annuity:Ordinary Annuity Annuity Due

Amount to be Accumulated $100,000

Number of years 10

Annual Interest Rate9.00%

The periodic deposit is: $6,582.01

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DESCRIPTION

This worksheet calculates the deposit per period needed toaccumulate some future amount.


RR01

Rate to Meet a GoalFinancial 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

DESCRIPTIONThis calculator computes the annual rate of return needed to

achieve a financial goal at some year in the future.


RR02

Real Rate of ReturnRate of Return 6.00%

Inflation Rate4.00%

Marginal Tax Rate28.00%

The real rate of return is: 0.32%l

DESCRIPTIONUse this calculator to determine the real rate of return. The realrate of return takes into account both inflation and taxes. It'sthe rate of return after subtracting the taxes owed on the returnand the loss in purchasing power as a result of an increase inthe Consumer Price Index (CPI).


RR03

Holding Period ReturnCurrent 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.


RR04

After Tax ReturnTaxable Return (%) 9%

Marginal Tax Rate15%

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 fromthe investment while the marginal tax rate is that of the investor.


RR05

Taxable Equivalent RateTax Free Return (%) 7.65%

Marginal Tax Rate15.00%

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 municipalbond to that of a CD, T-bill, or any other taxable investment.


RR06

Effective Annual Yield on InvestmentContract Rate (Nominal Rate) 6%

Frequency of Compounding (Choose One):

The effective annual yield on investment is: 6.09%l

DESCRIPTIONUse this calculator to convert the nominal or stated yield of an

investment to its actual yield, assuming a particular frequency

of compounding.


RR07

Yield to MaturityCurrent Bond Price $1,040 Par Value of Bond $1,000

Coupon Rate6.000%

Years to Maturity16

The yield to maturity is: 5.637%l

DESCRIPTIONUse 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.


RR08

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

DESCRIPTIONUse 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

the market portfolio is the expected rate of return you could

achieve if you invested in the entire stock market.

services such as Value Line Investment Survey. The return on


CB01

Net Present ValueInitial 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

910

11

1213

14

15

The net present value is:$9,931

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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.


CB02

Internal Rate of ReturnYears Cash Flows

0 Initial Investment --> ($45,000)

1$28,000

2$12,000

3$10,000

4$10,000

5$10,000

6

78

9

10

1112

13

1415

The internal rate of return is:21.65%

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DESCRIPTIONThis 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.


CB03

Payback PeriodYears 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

1112

13

1415

The payback period is: 6.975

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DESCRIPTIONThis 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 12 1,000 2 2,000 2

3 1,000 3 3,000 34 1,000 4 4,000 45 1,000 5 5,000 56 1,000 6 6,000 67 40,000 7 46,000 78 6,000 8 52,000 89 - 9 52,000 910 - 10 52,000 1011 - 11 52,000 1112 - 12 52,000 1213 - 13 52,000 1314 - 14 52,000 1415 - 15 52,000 15

6 This finds the year that is equal to or less than the initial investment6000 This looks up the amount accumulated for the year above

46000 This is the accumulation for the next year40000 This is the cash flow for the year in which payback is achieved

$39,000

0.975Payback 6.975


CB04

Annualized Net Present ValueDiscount 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

89

10

1112

13

14

15

The net present value is:$17,285

The annualized NPV is: $3,969 l

DESCRIPTIONThis worksheet calculates the Annualized Net Present Value(ANPV). The ANPV makes it possible to compare projects withdifferent life spans by converting the Net Present Value into anamount per year.


CB05

Initial InvestmentCost 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.


LL01

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

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DESCRIPTIONThis calculator uses a formula that is utilized by car dealers and leasing companies to calculate a monthly lease payment on anew 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 yearsThe above factors are conservative estimates for new vehicleswith 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 itby dividing the current new car loan rate by 2400.


LL02

Affordable AutomobileMonthly Payment you can Afford $295 Loan Term (Years) 4

Annual Percentage Rate8.00%

Down Payment$1,500

The price of the car you can afford is: $13,584 l

DESCRIPTIONUse 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 thatyour monthly installment payments should not exceed 15-20%

of your monthly take home pay.


LL03

Simple Interest Loan Payment

Loan Principal Amount $165,000

Annual Interest Rate 7.50%

Loan Period in Years 30

KEY FIGURESThe 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

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DESCRIPTIONCalculates the monthly loan payment necessary to amortize

a simple interest loan and other key loan figures.


LL04

Add-On Interest Payment




KEY FIGURESThe interest over the term of the loan is: $2,200 The monthly payment is: $150 The sum of all payments is: $7,200

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DESCRIPTION

This calculates the monthly payment and key figures for an add-oninterest loan.


LL05

Loan Pay-off Amount

Monthly Payment $1,182.08


Number of Payments Already Made 13


The pay-off amount is: $163,426 l

DESCRIPTIONThis calculator helps you determine the amount of principal that

remains on a loan so that you can pay off or refinance the

loan balance.


LL06

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.


LL07

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 FIGURESThe 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.


LL08

Balloon Payment



Amortization Period in Years 30

Years Till Balloon Payment 5

KEY FIGURESThe 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.


LL09

Bi-Weekly Loan




KEY FIGURESThe annual loan payments are: $8,801.52 The bi-weekly payments are: $338.52 The interest over the term of the loan is: $164,046 The sum of all payments is: $264,046

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DESCRIPTIONUse this calculator to compute a bi-weekly payment loan -- 26

payments per year.


LL10

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 $72,726

$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 monthlyhousing 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

5.27255752725.57$72,726

The affordable home cost (35%) is:

The affordable home cost (2.5 x Income) is:


LL11

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 TotalCurrent Monthly

Other Consumer Debts Balances Payments

Totals for All Consumer Debts $10,000 $550

The home equity is: $125,000 $90,000

The affordable total monthly payments are: $1,600 The credit line for which you qualify is: $43,333

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DESCRIPTION

Use this calculator to determine the home equity loan or line ofcredit for which you qualify.

The credit line (ignoring affordability) is:


LL12

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.

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