# Calculators

# Basic Financial Calculator

This basic financial calculator works just like a pocket financial calculator. In addition to the normal calculator arithmetic it can also calculate present value, future value, payments or number of periods.

# Definitions

**Compute**- Pressing the compute button lets the calculator know that you are going to select a field to compute. For example, if you press the compute button and then press the payment (PMT) button the calculator will compute the value for the PMT. This is the same method used to calculate the number of periods (N), interest rate per period (i%), present value (PV) and future value (FV).
**Payment (PMT)**- This is the payment per period. To calculate a payment the number of periods (N), interest rate per period (i%) and present value (PV) are used. For example, to calculate the monthly payment for a 5 year, $20,000 loan at an annual rate of 5% you would need to:
- Enter 20000 and press the PV button.
- Enter 5 and then divide by 12. The result is 4.1666667 and then press the i% button.
- Enter 5 and then multiply by 12. The result is 60 and then press the N button.
- The FV field should be 0, however even if a value is entered here it will be ignored.
- Press the Compute button and then the PMT button. It will then compute your payment of $377.42

**Number of Periods (N)**- This is the number of periods in the calculation. Make sure this is the number of payments if you are calculating loan values. For example, a 10 year loan with monthly payments has 120 periods. When you calculate the number of periods the interest rate per period (i%), payment (PMT) and present value (PV) are used.
**Interest Rate per Period (%1)**- This is the interest rate per period. Make sure this is the interest per period. For example, if you have 2 year investment that compounds interest monthly this should be the monthly interest rate. When you calculate the interest rate per period the payment (PMT), number of periods (N) and present value (PV) are used.
**Future Value (FV)**- This is the future value (FV) of payments (PMT) and any amount saved in the present value (PV). When you calculate the future value the payment (PMT), number of periods (N), interest rate per period (i%) and present value (PV) are used.
**Present Value (PV)**- This is the present value (PV) of payments (PMT) and any amount saved in the future value (FV). When you calculate the present value the payment (PMT), number of periods (N), interest rate per period (i%) and future value (FV) are used.

Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.