Are Calculators Helpful in Solving Financial Equations? – A Discussion

Calculators are required in every field of life, but in the case of finance, they are inevitable. Why not make proper use of them and let your business grow?

Financial Equations – A Need in Professional Life

Finance is a game of making calculations. If you commit a small mistake, it ruins the whole thing. Finance and economics experts need to be careful about the intricacies in calculations as well as the accuracy. Calculators are not only needed for those working on the professional level but those pursuing these fields on a professional level.

Financial calculator that is Mycalcu, great use in the fields related to business and finance. Those students who have studied economics or business at the undergraduate level are well-acquainted with these gadgets. Financial calculators are very much useful because of the features they have. They can help you with conversion, calculation of rates, and work on interest values for you.

Along with that, it is useful for homeowners too. They can make their monthly budget using a financial calculator. Calculating monthly expenses, any deductions, savings, and other details can be made using a financial calculator. Thus, its uses are not only limited to a specific profession or a class of learners.

What makes them specifically important is their need in the lives of professionals like businesspeople. Their life is incomplete without a financial calculator. Financial equations’ calculations take a lot of time and need care while being handled. Thus, the calculator not only saves time and energy but also ensures that the values are correct.

 Financial equations are formulae that tell you about the liabilities and the assets that a person or a collective holds. It provides the balance sheet. This sheet can be used for different purposes like management, finding out the value of savings and profits, investments, etc.

How to make it easy?

There are more than ten personal finance equations that are equally important for businesspeople as well as homeowners.

For all the given equations, you need to know the formula, and the results will appear before you on the calculator screen. Here are some of those:


Amortization is a financial equation that can be solved with a calculator. This equation is about the payment of debt. It tells of how much amount you would have to pay on a monthly basis to get rid of debt.

The main considerations while calculating answers through this equation are the number of periods, interest rate, the principal amount, and the payments per period. It provides the monthly estimate of the payment of the debt. After making this calculation, you are able to decide how much you would have to save to pay off your debts.

It is used for the calculation of long-term debts like student loans, car loans, mortgages, etc.

Simple Interest

This equation tells of the amount of interest you can earn from the principal amount. It takes into consideration the factors like period of time, interest rate, and the principal amount. This equation provides you a quick insight into the addition of interest to your savings account or any other source of saving.

It gives a rough estimate of the growth of your assets of how much they will grow over time. This helps you plan well for the future. Like the previous one, this equation can also be solved with a calculator.

Compound Interest

Compound interest is the amount of interest that is collected based on the principal amount and the amount of interest added to it in the past. The requisite figures, in this case, are the principal amount, the amount accumulated, the period of time, interest rate, and compounding in the specific period of time.

It is best for use if you want to know how much interest you will earn in a specific period of time.  

Cash Flow

Cash flow shows the relationship between income and expenses. It shows how much you can save in a specific period of time or how much you will spend. It is better for the management of your income and expenses. If the amount left goes in the negative, then you need to tighten your budget.

Present Value of OA

OA here refers to ‘Ordinary Annuity,’ which means the value of something in the present in comparison to its value in the future. This is based on the inflation rate. This equation is used to decide whether you should be taking your pension in cash, lump sum, or lottery.

  • Future Value OA

This value determines the value of your money in the future. It tells about how you should be taking your payments, either to do it partially in a specific period or at once. This is important in cases like insurance and child support.

  • CAGR

CAGR refers to Compound Annual Growth Rate. This shows the value of investors’ sum in comparison to the ups and downs in the economy. It tells you of your yearly growth if you based the values on realistic figures. It tells you about the value of your bonds, stock shares, or any other investments that you have made.

Along with all these are other equations that can be solved with a calculator and can bring great relief to your life.

Online tools and their availability

There are many online tools/calculators available to solve these equations for you. You just need to input the data correctly, and the calculator will present the data before you. Most of them are available for free, and the only thing you need to do is to search for them. For some of these apps are also available, which can be installed on various devices and then used.

Benefits of using Calculators in Financial Calculations

These tools are not only easily accessible but are also cost-free. You don’t need to spend on dedicated gadgets for this purpose. Instead, your phone, tablet, or PC will work for you. An active internet connection is enough to fulfill your needs. You will find a variety of dedicated online calculators that will solve equations for you.

These calculators are helpful in a variety of situations for you. Make use of these free online resources.

Our Recommendation

The decision is yours as we explicated the need, use, and availability of calculators (both physical and online). Now it is your choice to make use of them and take your decisions prudently.

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