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.

Whether you want to purchase a substantial asset (car, household equipment...), or put aside enough for your retirement or children's education, you need to plan your savings to reach a specific goal.

Select an objective below, and follow the corresponding instructions. Once all fields but one are completed, click on compute to get the result.

Select an objective:
Then, click on

Planning for the future: Asset: Periodic savings needed

You plan on purchasing an asset soon, and wish to know how much you need to save to get it. Follow the instructions below, completing all 5 fields but the one corresponding to Periodic Payments.

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.


Enter the number of periods between now and the time at which you plan on making your purchase (eg, if in 2 years, enter 24, assuming you will be saving a regular amount 12 times a year; otherwise, if you plan on saving a regular amount less or more frequently, make sure you change the number of periods per year in the options table below accordingly).

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


Enter the average expected rate of interest being paid on your savings.

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 amount of savings you have put aside so far as a NEGATIVE sum.

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


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

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.


Enter the value of the asset you plan on purchasing here. Adjust for inflation if necessary.

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

You should not need to change any of the options below.
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
    Periodic Payments
    COMMENTS

    You will be saving for 24.00 periods, at a real periodic yield of 1.00%.
    Your savings amount to $ -4,000.00 at the moment, to which you periodically add $ -238.05. The asset you plan on purchasing is worth $ 11,500.00.

  • 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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