Financial Math Guide
Future Value (FV)
FV = PV × (1 + r)^n
PV=present value, r=rate per period, n=periods
Present Value (PV)
PV = FV / (1 + r)^n
Discounting future cash flow to today
Compound Interest
A = P(1 + r/n)^(nt)
n=compounds/year, t=years
Net Present Value (NPV)
NPV = Σ [Ct / (1+r)^t] - C0
Ct=cash flow at t, C0=initial investment
Rule of 72
Years to double ≈ 72 / r%
e.g. at 6%/year: 72/6 = 12 years
Annuity Present Value
PVA = PMT × [1-(1+r)^-n] / r
PMT=periodic payment
Compound Interest Calculator
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