Personal Finance Formulas

Net Pay (Take Home Pay)

Gross Pay - Deductions

Gross Pay (Salary)

Annual Salary x # of Pay Periods

Gross Pay (Hourly)

Hourly Rate x Hours Worked

Cash Flow

Income- Expenses

Net Worth

Assets - Liabilities

Overtime Pay

1.5 x Hourly Rate

Deductions

Taxes, Insurance, Retirement plans

Simple Interest (Calculated at end of time period)

Principal x Rate x Time(In years)

Daily Periodic Rate

APR/365

Compound Interest (Interest added to principal for next period)

(PRT)= How much you will have after x year and then keep going ex. 5000x.03X1=150; then 5150x.03×1 =154.50 etc.

Annual rate of return

Interest/Deposit

Annual Percentage Yield

Rate of interest received based on compounding

Return on Investment (ROI)

Future Value/Starting Value - 1

Future Value

Starting Value x (Rate of Return + 1)

Simple Rate of Return

(Future Value - Starting Value)/Starting Value * 100%

Compound Annual ROR

((Future Value/Starting Value)^1/y)-1, then multiply by 100%

Compound Future Value

Starting Value * (1 + ROR/100%)^y

Simple Annual ROR

Divide the ROR by the # of years of the investment

Rule of 72

Determines how long it will take your money to double at a fixed rate of years. 72/ROR