Financial Calculator

Version: Beta 0.2 (September 27, 1996)

A financial calculator helps assess the value of money at different points in time according to a variety of cash flow situations (cash flows are movements of cash, ie money you give or money you receive).

Select the type of computation sought: , then click on .

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Meanwhile, we developed a Microsoft Excel version of this tool.

Find out the information you are looking for by selecting the corresponding question in the pull down menu below. Detailed instructions will then guide you through the data needed to complete your request, for each of the five fields that follow. Once all fields but one are completed, click on compute to get the result.

Select an objective:
Then, click on

Mortgage: How long

How long will it take to repay your mortgage? Follow the instructions below, completing all 5 fields but the Number of Periods...

1) The Number of Periods.
The Number of Periods is the amount of time the loan or investment lasts, ie the number of times interests are paid on an investment or the number of times payments are made to solve a loan.


This is the information you are looking for. Hence, leave this field blank.

2) The Yield.
The Yield is the rate of interest you earn on an investment, or pay on a loan.

Enter the average rate of interest you are paying on your loan.
You should enter:

  • either the real periodic yield, if available. Select "Period" in that case.
  • or the nominal annual yield. Select "APR" in such case.
Enter a percentage. For instance:
    -- For a rate of 8%, enter 8
    -- For a rate of 6.75%, enter 6.75
    -- For a rate of 57/8%, enter 5.875

Period
Year (APR)
3) The Present Value.
The Present Value is a sum you receive or pay at the beginning of a timeline.


Enter the remaining balance of the mortgage loan.

4) The periodic payment.
The Payment is a sum you periodically receive or pay.

The following is a sum you pay, therefore enter this sum as a NEGATIVE.
Enter the amount you will be paying each month toward solving the mortgage.

5) The Future Value.
The Future Value is a sum you pay at the end of a typical loan or receive at the end of a typical investment.

Usually, no sum is due at the end of a mortgage. Hence, enter 0 in this field.

Now that four of the five fields are completed, click on to generate the result.

If you wish to obtain the details for each period of the part of your mortgage payments is for interests and which reduces the principal, check the "Amortization Table" option below.
If the characteristics of your loan are unusual (there are only six payments per year, interests are continuously compounded...), change the options accordingly.

OPTIONS
YIELD
  • Number of periods (ie payments) per year =

  • Interests are paid at: the beginning of a period the end of a period
  • Compounding of interests: None Periodic Continuous
    • The real yield is 1.00% per period, or 12.68% per year compounded , with "12" periods per year. The nominal yield (compounding of interests not taken into account) is 1.00% per period, or 12.00% per year.
    For more information on yields, select Interest Converter in the type of computation sought.
    OTHER
  • Currency

    Amortization Table

    • RESULT
    Number of Periods
    COMMENTS

    The mortgage will last 180.07 periods, at a periodic rate of interest of 1.00%. The loan balance is $ 50,000.00. Periodic payments amount to $ -600.00. At the end of the mortgage life, a leftover of $ 0.00 remains (should be 0).

  • Amortization Table.
    An amortization table distinguishes for each period between, the capital that is invested or borrowed, and the interests that are earned or paid.

    • You may wonder why some figures should be entered as negative. The reason is, this tool parallels the use of a financial calculator, where cash outflows (ie, money you pay or invest) must be entered as negative sums.

    Disclaimer

    We cannot be held responsible for any detrimental consequence or decision based on the use of this tool and others, and urge you to cross-check any conclusion you may infer with other means... including common sense!


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