Financial Formulas

A reference of financial formulas, grouped by category below. Every formula is typeset with KaTeX for clean, readable notation you can view online — click "Print" on any category to print it, or save it as a PDF straight from your browser's print dialog. Looking for a different subject? Browse the full list of math formula references.

Interest

$I=Prt$

simple interest — $P$ = principal, $r$ = annual rate, $t$ = years

$A=P(1+rt)$

simple interest — total accrued amount (principal + interest)

$A=P\left(1+\frac{r}{n}\right)^{nt}$

compound interest — $n$ = compounding periods per year

$A=Pe^{rt}$

continuous compounding

Present & Future Value

$FV=PV(1+r)^n$

future value of a single amount

$PV=\frac{FV}{(1+r)^n}$

present value of a single amount

Annuities

$FV=PMT\cdot\frac{(1+r)^n-1}{r}$

future value of an ordinary annuity

$PV=PMT\cdot\frac{1-(1+r)^{-n}}{r}$

present value of an ordinary annuity

Loans

$PMT=\frac{P\cdot r}{1-(1+r)^{-n}}$

fixed loan payment — $P$ = loan principal, $r$ = rate per period, $n$ = number of payments

Growth

$CAGR=\left(\frac{EV}{BV}\right)^{\frac{1}{n}}-1$

compound annual growth rate — $BV$/$EV$ = beginning/ending value, $n$ = years