Formulas

How To Calculate Percentage Change (With Examples)

Calculating a percentage change is a useful skill for every professional to have. Whether you’re comparing prices, production times, or inflation rates, it’s almost a guarantee you’ll need to calculate a percentage change at some point. In this article, we’ll teach you how to calculate a percentage change, and we’ll even show you a few […]

How To Calculate Growth Rates (With Examples)

To calculate growth rates, you can use the straight-line method, the midpoint method, or calculate the average over time.

How Do You Find The Average Of Percentages?

To calculate the average of percentages, turn the percentages into decimal numbers, add them together, and divide that sum by the sum of all the sample sets.

How To Calculate Marginal Utility (With Examples)

To calculate marginal utility, take the change in total utility and divide it by the change in units.

How To Calculate Probability (With Examples)

To calculate probability, divide the number of ways the event can occur by the total number of outcomes.

How To Calculate The Inflation Rate (With Examples)

To calculate the inflation rate, subtract the past cost of an item from its current cost, and divide that result by the past cost.

What Is Debt-to-Income Ratio (DTI)? (And How To Calculate It)

Summary. Your debt-to-income ratio (DTI) is the percentage of your gross monthly income dedicated to paying off debts. Potential lenders, such as banks, use your DTI to estimate the monthly payments you’ll be able to handle, as well as how likely you are to pay them back. Whether you’re gearing up to buy a new […]

How To Calculate Full-Time Equivalent (With Examples)

Running a business involves a lot of paperwork, and that paperwork often includes a significant number of acronyms. One acronym you’ll likely encounter when you start hiring employees is FTE, or full-time equivalent. In this article, you’ll learn what FTE is, why it’s important, and how to calculate it. Key Takeaways Companies use FTE to […]

What Are Retained Earnings?

Whether you are a founder, an investor, or an accountant, retained earnings are an important concept to know and understand. Retained earnings refer to the amount of net income remaining after a company has paid out dividends to its shareholders. Retained earnings refer to the portion of a company’s earnings after these dividends have been […]

How To Calculate Operating Cash Flow (OCF)

When you own a business, there are many terms you’ll have to learn in order to get a thorough understanding of the financial health of your company. One of these is operating cash flow (OCF). In this article, we’ll explain what operating cash flow is, how to calculate it, and the differences between OCF and […]

Understanding Cost Of Capital (With Examples)

While coming up with something new for your company is exciting, you’ve got to convince everyone else that it’s worth it by proving that there will be a return on investment. After all, other members of your company will want to ensure that all of everyone’s hard-earned money is going to a good place. That’s […]

How To Calculate Odds (With Examples)

No doubt, betting can be a nerve-wracking process. Regardless of what you’re betting on, you want to make money, not lose it. That’s why it’s important not to go in blind. After all, your money’s on the line! Given that, understanding odds is your first step toward betting success. Instead of going into the casino […]

Shareholder Equity: Definition And Examples

It’s important to analyze a company’s balance sheets before making any significant investment in them. However, you may not understand the specific terms on their balance sheets mean or represent. This article focuses on one of the most common of these terms — shareholder equity. We’ll discuss what shareholder equity means and how to calculate […]

Earnings Per Share (EPS): Definition And Examples

Before making investment decisions, it’s important to understand what the terms commonly thrown around by analysts and listed on a company’s balance sheet really mean. In this article, we’ll focus on Earnings Per Share (EPS). We’ll discuss what the term means and how to calculate it, the different types of EPS, and important tips for […]

How To Calculate Weighted Average (With Examples)

Many jobs across multiple fields require the calculation of weighted averages, as they often provide a more accurate picture than simple averages. It’s important to know how to calculate a weighted average, and while this may sound like a tall order if you don’t call yourself a mathematician, it’s actually simpler than you may think. […]

How To Calculate Margin Of Error (With Examples)

When it comes to analyzing career statistics, conducting customer polls and surveys, reviewing staff questionnaires, and more, the margin of error can be a telling figure. As a result, it’s important for professionals in any line of work to be able to understand margin of error and how to calculate it. To help you with […]

How To Calculate Time And A Half (With Examples)

If you’ve ever worked overtime hours in an hourly job, it’s likely you’ve seen the term “time and a half,” which refers to the extra money you’ll make during those hours. Knowing how to calculate time and a half is a good skill to have whether you work in payroll or are simply trying to […]

What Is Annual Percentage Rate (APR)? (With Examples)

Your annual percentage rate (APR) is the interest rate paid each year on your loan, credit card, or another form of credit. Borrowing money from an institution has a cost to it. Banks and other financial institutions charge a certain percentage of the money borrowed from them to make a profit. APR is a percentage […]

How To Calculate Debt To Asset Ratio (With Examples)

Understanding the debt to asset ratio is a key part of a company staying afloat financially. It tells you how well a business is performing financially and if it can afford to continue or needs revaluation. The debt to asset ratio creates a picture of the debt percentage that makes up an asset portfolio. Correctly […]

How To Calculate The Correlation Coefficient (With Examples)

Correlation does not imply causation. It is a commonly used phrase, one you’ve more than likely heard at one point or another. It means that a cause-and-effect relationship cannot be determined just because there is some observed correlation between two variables. We can’t infer causation simply because there is some degree of correlation. We may […]

How To Calculate Profit Margin (With Formula & Tips)

Profit margins are one of the most widely used financial ratios in the corporate finance industry. A business calculates its profit at three levels on its income statements. This starts with the most basic profit, gross profit. Next is operating profit, and last, and most comprehensive, is net profit. All three of these profits have […]

How To Calculate Total Variable Costs: Examples And Formulas

Cost is one of the most significant factors to determine success when running a business. If you want your business to be profitable, understanding variable costs is a key component to ensuring that happens. However, variable costs can sometimes be too abstract for people to wrap their heads around at first glance, especially if they […]

What Is Percent Yield And How To Calculate It? (With Examples)

When taking the pharmaceuticals that bring us back to full health, we rarely stop to think about what went into making them. Before becoming a tiny white pill that obliterates a headache in a matter of hours, a series of chemical processes took place first to create it – under the observation of a trained […]

How To Calculate Fixed Cost (With Examples)

When you manage a business, it’s important to keep track of expenses. Your revenue subtracted by your expenses gives you your net profit, an important measure of how things are going. Your expenses can be broken down into two main categories — fixed cost and variable cost. Fixed costs are your expenses that are not […]

How To Calculate Consumer Surplus (With Examples)

Understanding economic supply and demand provides valuable insight into any given market. You’ve probably seen a basic demand-supply graph used to illustrate the relationship between a product’s market price and the quantity demanded by consumers. Consumer surplus and producer surplus are important pieces of the equation. Markets tend to fluctuate, especially because consumers are able […]

The Different Types Of Variables Used In Research And Statistics

Scientists and statisticians conduct experiments on a regular basis. Scientists use these experiments to identify cause and effect, while Statisticians use variables to represent the unknown or varied data in their experiments. Determining which variables to use is vital to the experiment. Also, choosing the right variables will lead to clearer analyses and more accurate […]

How To Calculate Z-Score (With Examples)

Whether or not you enjoyed your statistics class in high school, statistical concepts are everywhere in the business and academic worlds. One of these commonly used concepts is a z-score, also called a standard score. In this article, you’ll learn what a z-score is, how to calculate and interpret one, and how they’re used in […]

What Is The Sample Mean? (With Examples)

Little is more crucial to the growth and success of a business than their statistical analysis efforts. It provides information that’s needed to formulate strategic planning and decision-making. The foundation of statistics is rooted in utilizing samples to offer predictions that can apply to larger populations. Referring to the sample mean is a stepping stone […]

How To Calculate Price Elasticity Of Demand (With Examples)

Every product on the market has its fluctuations in demand. Understanding a product’s demand is crucial for setting an appropriate price point and making sales. Many businesses struggle to define the price of their product because even the slightest miscalculation sends consumers running in the other direction. That’s the battle of price elasticity of demand. […]

How To Calculate Depreciation (With Examples)

Many people prefer to leave anything involving their taxes to an accountant, but becoming familiar with a few key terms and situations could help you in the future. Taxes become a much more interesting subject when it enables you to save lots of money with deductions. One of the most useful aspects to attempt to […]

How To Calculate Operating Income (With Examples)

Balancing your expenses and income is an important part of any successful business. Regardless of the type of business you’re running, you have to make sure you’re earning more than your spending. Well, given that managing your income and expenses is an important part of your success, you should consider calculating your operating income regularly. […]

How To Calculate Confidence Interval (With Examples)

Assuming you’re searching for an apartment in a new city, and you happen to find a local survey that had randomly sampled a hundred apartment advertisements and determined with 95% accuracy that the price range for one-bedroom apartments in the area is $845-$1155. In this example, the confidence level, which is usually represented as a […]

How To Calculate Opportunity Cost (With Examples)

There’s no doubt that investing can be a nerve-wracking and tricky business. However, with the right precautions, it can also be extremely profitable. To minimize risks and maximize profits, investors often use various tricks of the trade to calculate and compare potential decisions. One of these valuable tools is comparing one economical choice to the […]

How To Calculate Cost of Goods Sold (With Examples)

When it comes to running a business, the list of expenses to track is endless. You need to know the cost of payroll, marketing, supplies, rent, commissions, and the cost of goods sold, among others. If you work in management or accounting or run your own business, you have likely come across the term “cost […]

How To Calculate AGI (Adjusted Gross Income)

Understanding what adjusted gross income is and calculating it accurately is essential for working professionals across all industries and professions. No matter your title or job, solidifying your grasp and comprehension of adjusted gross income can help you avoid headaches when tax season rolls around and even saves you serious cash. Ask any accountant or […]

How To Calculate CPI (Consumer Price Index)

Inflation is a common concern among corporate executives, small business owners, hardworking employees, and government leaders. The annual rate of inflation, or the level at which the value of a certain currency is falling and the prices for certain goods and services are rising, has been a common household discussion for decades. In the United […]

How To Calculate Simple Interest (With Examples)

Calculating simple interest is a staple in an adult’s basic financial skills toolbox. The formula and solving for interest is straightforward and it’s useful for a bunch of complex fiscal situations that a person comes across in their lifetime. Understanding how to find simple interest and its use in the world helps to navigate the […]

How To Calculate Percentiles (With Examples)

Whether you enjoyed math classes or not, your math teachers weren’t lying when they said you’d use the things you were learning in the future. Even though most people don’t use the complex formulas and algebra equations they learned in high school in their daily lives, some smaller facets of math come in handy, especially […]