A zero-coupon bond pays nothing until maturity, so you must discount its face value to know today’s price. In 2023, $332 billion of U.S. Treasury STRIPS—classic zero-coupon securities—were outstanding (U.S. Treasury, 2024). Use the simple formula Face Value ÷ (1 + Yield)^Years to get an instant estimate of what the bond is worth right now.
Yield to maturity (YTM) shows the annualised return you lock in by buying a bond today and keeping it to maturity. Enter coupon, face value, market price and years; the calculator reveals the approximate YTM in seconds. Investors use YTM to benchmark bonds inside the $10.5 trillion U.S. corporate bond market (SIFMA, 2023).
Compute a weighted average by multiplying each value by its weight, adding the products, then dividing the sum by 100. This blends numbers according to real-world importance. A 2023 CFA Institute survey found 91 % of portfolio managers rely on weighted averages when forecasting portfolio returns (CFA Institute, 2023).
Total stock return tells you the real gain from a stock—price change plus dividends divided by your starting cost. The S&P 500 has delivered about a 10 % annual total return over the long run (S&P Dow Jones Indices, 2023).
The calculator shows the taxable yield a bond must earn to equal a tax-free yield. Divide the tax-free rate by one minus your marginal tax rate; e.g., 5.10 % ÷ (1 – 0.30) = 7.29 %. The top U.S. marginal income-tax rate is 37 % (IRS, 2023). Use the tool to see if a taxable bond really beats your municipal bond after taxes.
The zero-growth dividend model finds a stock’s fair price by dividing its constant dividend by your required return. For instance, a $2.40 annual dividend and a 6.8 % hurdle rate give a value of $35.29—right on your screen in a single click. About 40 % of S&P 500 firms pay stable or slowly-growing dividends (S&P Global, 2023).
Unlock the power of smart home financing with our comprehensive Mortgage Calculator. Discover how different loan amounts, interest rates, and terms impact your monthly payments. Whether you're a first-time buyer or refinancing, make informed decisions about your mortgage. Ready to take control of your financial future? Explore now!
Unlock the power of stock valuation with our Present Value of Stock Calculator. Discover how to accurately assess dividend-paying stocks, compare investment opportunities, and make data-driven decisions. From novice investors to seasoned analysts, this tool simplifies complex calculations. Ready to revolutionize your investment strategy? Dive in now!
The calculator multiplies your principal by the annual rate and the time in years; $$I = P rac R{100} times T$$. Add that interest to the principal for the total. A $8,750 loan at 3.75 % for 2.5 years costs $820.31 interest—11 % of the principal (Investopedia, https://www.investopedia.com/terms/s/simple_interest.asp).
