Calculators

Calculate and Interpret the Cost of Equity

The Cost of Equity (COE) is the minimum rate of return shareholders require for their investment in common stock of a corporation. This expected future return to the investor consists of both capital gains (share price appreciation) and dividends. The cost of equity formula helps investors determine the cost of capital which equates [...]

Calculate the Effective Annual Interest Rate

The effective annual interest rate refers to the rate of interest when compounding is applied more than once per year. The effective annual interest rate is used to annualize the interest rate after taking into account the effects of compounding. The concept of an effective annual interest rate is important for anyone who [...]

Calculate Mutual Fund Expenses

Mutual fund fees and expenses refer to those charges investors of mutual funds incur associated with the fund’s advisory fees, marketing fees and transaction and distributions costs. These costs are passed from the mutual fund company to its investors and have a negative impact on overall investment performance. The higher a fund’s costs, the [...]

A Credit Card Debt Reduction Calculator

Most financial experts will tell you that one of the first and most important ways to take control of your financial life is to get a handle on your credit card debt. The high finance charges associated with credit card debt can put a real strain on your personal finances and keep you from [...]

Calculate the Estimated Dividend Growth Rate for a Stock

As most investors know, mature companies tend to pay dividends, sending checks that represent a small fraction of the company’s profits to shareholders on a quarterly basis. While some investors prefer the volatility and excitement that often accompanies small-cap stock investing, the combination of capital gains through stock price appreciation along with income through [...]

Calculate and Interpret the Times Interest Earned Ratio

The Times Interest Earned Ratio is used to measure a company’s ability to meet interest payments on its debt. Also referred to as the “interest coverage” or fixed-charge coverage”, the ratio provides an indication to lenders and investors as to whether the company is likely to run into any financial trouble. A high [...]

The Decision to Refinance Your Mortgage (includes calculator)

Mortgage refinancing is the replacing of an existing mortgage loan with a new mortgage loan that offers different terms. When refinancing a mortgage, the lender typically charges an up-front payment based on a stated percentage of the total amount borrowed. This fee is most commonly expressed as “points”, with each point equaling 1% [...]

How Do I Calculate My Monthly Mortgage Payment?

A mortgage is a loan from a bank or other source to cover the difference between the cash you have available and the agreed-upon purchase price for a piece of real estate. The monthly payments you make on a mortgage consist of the interest and principal and continue until the entire loan balance is [...]

Calculate and Interpret the PEG Ratio

The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric used to measure the trade-off between a stock’s price, its earnings per share (EPS), and the expected growth of the company. While the price/earnings (P/E) ratio is closely tracked to determine whether a stock is over or under-priced, the PEG ratio incorporates the [...]

Benjamin Graham: Intrinsic Value Calculator

In his book The Intelligent Investor (published in 1949), Benjamin Graham introduced investors to a rule-of-thumb formula for valuing stocks. The formula seeks to establish a stock’s value based on earnings and growth expectations while incorporating currently available bond yields as an investment alternative investment. For value investors, bond yields present a significant [...]