ROI Calculator ROI (Return on Investment) Calculator Investment Amount ($): Return or Profit ($): Calculate ROI Why ROI is More Important Than "Passion" Whenever you make any investment or think of investing money in a business, it is very important that you calculate the return on investment which we call ROI. See, calculating ROI is not a difficult task, you can easily calculate it. In this post, we will see further how ROI is calculated and now calculating ROI is not a big task, but the main problem is that many times we do not calculate ROI whether a business or investment will give us positive returns or not, rather we become emotional or become more passionate and stop thinking rationally.  When we are more passionate, I have often seen people making these mistakes or it may be that you have also made this mistake, in fact I myself have also made these mistakes. So in this post, we will also see where we make mistakes and how to cor...

CAGR Calculator CAGR Calculator Starting Value: Ending Value: Number of Years: Calculate What is CAGR (Compound Annual Growth Rate) Whenever you read a newspaper, a business journal, or a financial magazine, you’ve probably come across frequent discussions about returns. For instance, you might see something like: “The company's sales grew at a CAGR of 17% last year,” or “This investment delivered a CAGR of 15% over the past five years.” Let’s break that down with a simple example. Suppose you invest $1 million, and after five years, that investment doubles to $2 million—giving you a total return of 100%. Now, if you want to know the rate at which your investment grew each year to achieve that 100% return over five years, you’d calculate the Compound Annual Growth Rate, or CAGR. In essence, CAGR is the annualized rate of return that tells you how steadily your money grew over a period of time, even if the actual yearly returns varied. I...

Absolute Return Calculator Absolute Return Calculator Initial Investment ($): Final Value ($): Calculate What is Absolute Return Absolute return refers to the total return on an investment, without considering the time period involved. For example, let's say you invest $100,000, and after five years, your investment grows to $200,000. That means you've earned a 100% return — your money has doubled. This 100% gain is what we call the Absolute Return. How to Calculate Absolute Return (A Step-by-Step Example) Imagine a business that has been making sales over the past five years. In the first year, it generated $1 million in sales. In the second year, sales rose to $1.1 million. The third year saw $1.5 million, the fourth year $1.7 million, and in the fifth and current year, sales reached $2.2 million. Now, let’s focus on these sales figures to understand the concept of Absolute Return. This same method can be applied to profits, stock prices, mutual fu...

Future Value of Annuity Calculator Future Value of Annuity Calculator Investment Amount (A): Annual Interest Rate (%): Number of Periods (n): Calculate What is FVA (Future Value of Annuity) The future value of an annuity refers to the total value of a series of regular investments at a specific point in the future, taking into account compound interest. For example, imagine you invest $1,000 every month starting at age 24. The future value of an annuity helps you determine how much that money will grow to by the time you retire or reach a milestone age like 35. It’s a powerful tool for understanding how consistent investing can build significant wealth over time. Method 1: Calculating Future Value Manually (The Long Way)  Let’s say you invest $10,000 each year for three consecutive years—starting in November 2025, then again in November 2026, and finally in November 2027. You're earning a 7% annual return on each investment. Now, let...

Cap Rate Calculator Cap Rate Calculator Net Operating Income (NOI): Property Value / Price: Calculate What is Capitalization Rate (Cap Rate) in Real Estate? Complete Beginner’s Guide Are you planning to invest in commercial real estate but unsure how to evaluate if the property is worth the price? One of the most reliable ways to assess a commercial property’s value is through the Capitalization Rate, commonly known as the Cap Rate. This essential real estate metric helps you estimate your potential return on investment and decide whether a property is a good financial choice. In this article, we’ll explain what cap rate means in real estate, how to calculate it, and how to use it effectively before investing. What is a "Cap Rate" in Real Estate? Cap Rate Definition: The Capitalization Rate is the rate of return you can expect from a real estate investment based on the income the property generates. It’s a straightforward method used by real es...

Altman Z-Score Calculator Altman Z-Score Calculator Working Capital / Total Assets (X1): Retained Earnings / Total Assets (X2): EBIT / Total Assets (X3): Market Value of Equity / Total Liabilities (X4): Sales / Total Assets (X5): Calculate Z-Score What is Altman Z Score The Z-score, developed by Edward Altman in 1968, is a financial tool designed to predict the likelihood of a company going bankrupt. It helps assess a company's financial health, indicating how strong or solvent it is in both the short and long term. The 5 Ratios (Components) of the Z-Score To assess the financial health of a company, we can use five key financial ratios, each of which highlights a different aspect of performance. These ratios, when combined, provide a comprehensive view of the company’s stability and efficiency. The Five Key Ratios: 1. X1 = Working Capital / Total Assets 2. X2 = Retained Earnings / Total Assets ...

Bond Duration Calculator Bond Duration Calculator Face Value: Coupon Rate (%): Yield to Maturity (YTM) %: Years to Maturity: Payments Per Year: Annual Semi-Annual Quarterly Calculate What Bond Duration do? One fundamental concept in bond valuation is the inverse relationship between interest rates and bond prices. When market interest rates fall, the value of existing bonds rises. Conversely, when interest rates rise, bond values decline. This fluctuation introduces what’s known as interest rate risk—a risk inherent in all bonds, whether issued by the government or private entities. So, how can investors protect themselves against this risk? The answer lies in understanding bond duration. What is Bond Duration? (And Why It Matters) The concept of duration was introduced in 1938 by Canadian economist Frederick Macaulay, which is why it’s often referred to as Macaulay Duration....