Help Files and
Tutorials for Financial Calculators by RWENT Inc.
Click on the information links to view basic information about each calculator.
Click on the tutorial link to view a tutorial for each solver.
Mortgage Loan Solvers
Calculate Basic Mortgage information You can use this calculator to solve for
View the Mortgage Tutorial Period in
Years
Annual Interest Rate [%]
NOTE: The annual interest rate will automatically be converted to Nominal Interest. Most financial institutions use Nominal rates to calculate mortgages. Use the Nominal vs. Effective Interest Rates to calculate the different rates. For example if you want to use 8% Effective Annual Interest enter 8.3 in the Annual Interest Rate box the rate will be converted to 8%.
Purchase Price
Down Payment or
Payment Monthly, Bi-Weekly or Weekly
Suitable Loan and Payment information You can use this calculator to find a loan payment that meets your needs.
View the Loan and Payment Tutorial Use for loans where you may need an over/under cost buffer. Renovation projects etc.
Lease Solver information Solve for six inputs.
Period, Interest Rate, Purchase Price, Down Payment, Lease Buyout or Payment
Investment Solvers
(IRR = Internal Rate of Return)
Return On Investment Deposits IRR information You can use this calculator to find the value of an investment at a future date.
View the ROI Deposits Tutorial Solve four separate values
End Date
Lump Sum
End Value
ROI [%] = Return On Investment %
Return On Investment Monthly Deposits IRR information You can use this calculator to solve seven different fields.
View the ROI Monthly Deposits Tutorial End Date
1st of the month deposits
15th of the month deposits
Both 1st and 15th of the month deposits
Lump Sum Deposit
End Value Amount
Return On Investment % (ROI)
Return Calculator With Taxes information The Return Calculator With Taxes is designed to allow users to
View the Return Calculator with taxes Tutorial find the after tax income from their investments.
Capital Gains, Interest and 401K/RRSP are calculated.
Other deposits and or withdrawals can be entered at any time.
Withdrawal Solver With Taxes information This calculator is similar to the Return Calculator With Taxes. This
View the Withdrawal with Taxes Tutorial calculator allows a current value to be entered and withdrawals are
solved for a start period in the future. The withdrawals can be solved for any time period.
You can also input an end value in case funds arte required at the end of withdrawals.
Burial expenses for example.
Other Calculators
Nominal vs. Effective Interest
Rates information Why
is the effective rate important?
Loans can be calculated with different compounding periods. I.E. Monthly, Quarterly, Semi-Annually,
Annually etc. To protect the consumer in Canada, loan forms must state the effective rate.
(Commonly referred to as Annual Interest Rate) Annual compounding is the effective rate standard
because interest rates are commonly expressed as Nominal annual rates.
This makes it easy for people to compare rates and select the best rate when borrowing.
Bond Yield to Maturity Solver information This calculator uses a simple method to analyze a bond's yield to maturity (YTM).
Most newspapers will have the information you need to calculate the YTM.
If the Date Quoted is not given use today's date.
All you need to input is the
Coupon Rate
Date Quoted
Maturity Date
Amount Quoted
Mortgage Loan Solvers
Calculate Basic Mortgage
You can use this calculator to solve for
Period
in Years
Annual Interest Rate [%]
NOTE: The annual interest rate will automatically be converted to Nominal Interest. Most financial institutions use Nominal rates to calculate mortgages. Use the Nominal vs. Effective Interest Rates to calculate the different rates. For example if you want to use 8% Effective Annual Interest enter 8.3 in the Annual Interest Rate box the rate will be converted to 8%.
Purchase Price
Down Payment or
Payment Monthly, Bi-Weekly or Weekly
You are in the market for a home purchase.
You are not sure what you can afford.
You would like to make the purchase July 1, 2002
Enter 07/01/02 beside Start Date (All calculators use this date format MM/DD/YY)
You should start with a 25 or 30 year amortization period.
Enter 25 beside Period in years.
The End date is automatically calculated.
You can call your lender or search the Internet for current interest rates.
You find a 6.25% rate is available.
Enter 6.25 beside Annual Interest Rate [%]
NOTE: The annual interest rate will automatically be converted to Nominal Interest. Most financial institutions use Nominal rates to calculate mortgages. Use the Nominal vs. Effective Interest Rates to calculate the different rates. For example if you want to use 8% Effective Annual Interest enter 8.3 in the Annual Interest Rate box the rate will be converted to 8%.
You know what you are able to pay per month.
What you do not know is how much you can afford to purchase.
You will leave the Purchase Price as is for now.
Do not change it even if it is a way out of range. You will solve this question later.
You have saved $25,000.00 for your down payment.
You realize that it will cost about $7,500.00 for incidental expenses like lawyers, moving costs and incidentals like a lawn mower, garbage cans, rakes etc.
You think you will have $17,500.00 for a down payment. Enter 17500 beside Down Payment.
The Amount of Loan is automatically calculated. (It will not be accurate at this point as we have not finished our data input.)
You have done your budgeting and think you are able to afford a payment of $1500.00 per month.
Enter 1500 beside Payment Monthly
Your screen should look something like this.
You can now calculate how much you are able to purchase.
Click the ? beside the Purchase Price data box.
The Purchase Price is calculated at $246,918.60.
Click the Create Button under Mortgage Guide in the bottom right hand corner of the data entry area.
The calculator will fill in the spreadsheet. It will take a few seconds depending on the speed of your computer.
Under the Grand Totals area you see that you will make
Total Payments of $450,000.00
Total Interest Paid $220,581.40 (Welcome to the world of mortgages)
You do not like the idea of paying so much interest.
Click the small radio button beside Bi-Weekly under <Payment Frequency> at the top right hand side of the data input area.
Your payment is changed to $750.00 every two weeks. This is half of your monthly payment.
You will note that the Period in Years has changed to 20.95 from 25.
This means you will pay off the mortgage 4.05 years earlier by paying half the amount every two weeks. The reason this occurs has to do with the fact that you would have made 12 payments of $1500.00 by the month and now you will make 26 payments of $750.00 plus every time you pay bi-weekly you are not paying interest on the amount of principle you paid off in that two-week period. This all adds up to a large interest savings.
Click the Create Button again to see the difference.
Total Interest Paid $178,834.57
A savings of $220,581.41 - $178,834.57 = $41,746.84 in interest.
Click the Weekly radio button so the effect of weekly payments. You can see the weekly payment does not give you a great deal of savings. Most people choose the Bi-Weekly payment because they get paid every two weeks.
You can now solve for other scenarios
Select Monthly
If the data is not correct
Reset the data to Period in Years 25
Click the payment ?
You can enter amounts beside Annual Net House Taxes.
You can input taxes however you may add up your utilities and your taxes and input these amounts to see what the total cost per month will be.
Let us assume your Gas, Electricity and Water adds up to $400.00 per month.
This will be $4,800.00 per year. Your House Taxes are $2,700.00 per year.
The total is $7,500.00 per year.
Enter 7500 beside Annual Net House Taxes.
To the right of your Yearly expenses Per Month will be calculated.
Total - Principle Interest and Taxes $2,125.00
If you now select the Bi-Weekly Radio Button your expenses etc. will be broken down to a Bi-Weekly amount.
If you now select the Weekly Radio Button your expenses etc. will be broken down to a Weekly amount.
Another situation arises.
You have found a house you believe you can buy for $235,000.00
Enter the 235000 beside Purchase Price
Click the ? beside Down Payment
You see you can pay the $1500.00 per month however you only need $5,581.40 for a down payment. You may use the extra cash to help furnish your new home
.
The number of questions and solutions is innumerable. Try different combinations and you will find your solution.
Suitable Loan and Payment
You can use this calculator to find a loan payment that meets your needs.
You may want to renovate your home. You have chosen a contractor from the 3 estimates you received for the work.
In our example it is $30,000.00. You now need to know if you can afford the renovation.
You are aware that most renovation projects go over budget. You need to know if you can afford this cost over run.
Input the data. Enter numbers only no $ or % signs.
Interest Rate - Input up to 2 decimal places. We have called our financial institution and have been quoted a 6.00% interest rate.
Maximum Monthly Payment you can afford? - This is what you think you should budget for. We will use $500.00
Desired Loan - This is the amount of the contractor estimate you have chosen. In our example $30,000.00
+/- Of Loan in Percentage - This is where you input the over run estimate. In our example we have found that 10% is a good guideline.
You can ask the contractor for references and ask them what their situation was. Talk to friends about their experiences.
The calculator calculates the spread. In this example 10% is the spread. The calculator shows amounts 10% above and below your Desired Loan.
In this example $27,000.00 and $33,000.00
You can select Deposits/Withdrawals - At Beginning of Period or At End of Period
Click the Calc/Create Button and the spreadsheet is completed.
You now scroll down so you can see the Payment you input in the first column of the spreadsheet.
For our example we chose $500.00.
Highlighted in blue is the $500.00 Payment you input and Payments that are within the 10% you input.
You can scroll across the spreadsheet to find a suitable loan.
In this example $500.00 will pay a $30,320.61 loan over 6 years.
If you are over budget by our 10% and we need to borrow more money you can increase your payment or borrow
more funds over a longer period or a combination of both.
From above we see our 10% maximum is $33,000.00
Scroll across to see how long it will take to pay off $33,000.00
We can see that the spreadsheet shows a payment of $500.00 will pay a loan of $34,397.65 over 7 years.
You decide that 7 years is to long.
You can increase the payment by $50.00 to $550.00 and pay a $33,352.67 loan in 6 years.
This is within your budget and within the cost over run estimate and you decide to proceed with the renovations.
You can now input the final selections into the Calculator in the <What did you choose?> section.
What Monthly Payment did you choose? - $550.00
How Many Years? - 6
Total Cost of Loan - This is calculated. The total loan will cost $39,600.00 including interest.
The next section breaks the loan down into
Actual Amount of Loan $33,352.67 and
Total Interest you will pay $6,247.33
You can print the spreadsheet. Click in the Print Year 1-12 or Print Year 13 - 25.
You will get a Print Reports screen that allows you to preview, zoom and find in the printout.
When you click the printer icon you will be able to select the pages you want to print.
Each section is about 14 pages in length.
Lease Solver
Enter known information.
Click the ? to the right of the field you want to solve for.
Investment Solvers
(IRR = Internal Rate of Return)
Return On Investment Deposits
IRR
You can use this calculator to find the value of an investment at a future date.
You can solve four separate values.
End Date
Lump Sum
End Value
ROI [%] = Return On Investment %
You currently have $10,000.00 and you want to know how long it will take to achieve your goal of $30,000.00 to buy a new car.
Starting Value - Enter 10000
Start Date - Enter 01/29/02 (January 29, 2002)
Leave the End Date
Lump Sum - Enter 0
End Value - Enter 30000
ROI [%] - Enter the Return on Investment you think you will achieve.
For our Example
ROI [%] - Enter 6.5
Your End Date may be different at this point.
Your screen should look like this
Click the ? beside the End Date field.
The End Date should now read - 07/07/2019
You will have your new car July 7, 2019
You do not want to wait that long. Seventeen years is a long time.
You remember that you will be getting a bonus next year December 1, 2003.
You feel it will be about $5000.00
Click the ADD button under the <Deposits / Withdrawals> section.
A fill in box appears
Date - Enter 12/01/03
Amount - Enter 5000
Click OK
You are returned to the calculator and your deposit is entered in the spreadsheet.
Click the ? beside the End Date.
The End Date now shows September 1st, 2013.
Click the Create Button.
The ROI [%] may change to something close to 6.5.
6.4993 for example.
NOTE: This is due to the fact that to achieve an exact match the End Date would fall in the middle of a day. The calculator calculates a rate of return that is as exact as it can be. The calculator will not show partial days.
You still do not want to wait that long for your new car.
You would like to have enough by June 1, 2007
You feel that you should be able to use some of your savings by then.
You want to know how much you should save.
End Date - Enter 06/01/07
Lump Sum - Enter 1 and click your tab key to activate the Deposit Date field.
Deposit Date - Enter 5/31/07 The day before you want to buy your car.
ROI [%] - Re enter 6.5 if it has changed.
Click the ? beside Lump Sum
You will have to save a further 9,767.68 to have enough to buy your car.
This is only one simple example of how to use this calculator.
Return On Investment Monthly Deposits IRR
You can use this calculator to solve seven different fields.
1. End Date
2. 1st of the month deposits
3. 15th of the month deposits
4. Both 1st and 15th of the month deposits
5. Lump Sum Deposit
6. End Value Amount
7. Return On Investment % (ROI)
Enter your known data and click on the ? to find a solution.
You have used the Withdrawal Solver With Taxes to calculate that you will require $114,721.96 to retire with $2000.00 per month.
Withdrawal Solver
With Taxes Settings
We assume we were born August 31, 1959
You will retire at age 60
You need to withdraw funds until age 90
You require $2000.00 per month before taxes
§ Tax Rate - Enter Your Tax Rate
§ Starting Value -
§ Starting Date - Enter 01/31/02
§ Start Withdrawal Date - Enter 01/31/20
§ No. of Withdrawal Years - Enter 30
§ End Date is calculated to - Enter 01/31/50
§ Yearly Rate of Return - Enter 6
§ Withdrawal Amount - Enter 2000
§ Date of Birth - Enter 08/31/1959
§ <Frequency> Select Per Month
§ You can fill in the rest as required.
§ Click the ? beside Starting Value
§ End Balance Desired - Enter 10000
§ The Starting Value is calculated to $114,721.96
§ You require $114,721.96 to meet your objective.
Go to the Return On Investment Monthly Deposits IRR calculator
You have $25,678.88 in your portfolios. You need to have $114,721.96 accumulated before January 31, 2020 calculated with the Start Withdrawal Date from above. This is the year you will retire.
Enter the following data in the Return On Investment Monthly Deposits IRR calculator.
§ Starting Value - Enter 25678.88
§ Pac Start Date - Enter 02/01/2002
§ End Date - Enter 01/31/2020
§ 1st of month - Enter 0
§ 15th of month - Enter 0
§ Lump Sum - Enter 0
§ End Value - Enter 114721.96
§ ROI [%] - Enter 6
Your screen should look something like this
Click the ? beside 1st of the month field.
The calculator solves and fills in the spreadsheet below.
You require a deposit of $108.88 on the 1st of each month to achieve your goal.
You would rather deposit on the 15th of the month.
1st of month - Enter 0
Click the ? beside 15th of the month field
You require a deposit of $108.32 on the 15th of each month to achieve your goal.
You decide that you want to make deposits on the 1st and 15th of each month.
1st of month - Enter 0
15th of month - Enter 0
Click the ? beside the 1st and 15th of the month ? s
You find that you are required to deposit $54.10 on the 1st and the 15th of each month to achieve your goal.
You can afford to deposit $150.00 on the 1st of the month and the $54.10 on the 15th.
1st of month - Enter 150
You then Click the ? beside the End Date field
The result is you can achieve your goal June 18, 2016
You could retire 3 years 6 months and 13 days earlier and in the summer time (Northern Hemisphere).
You can now decide if the extra $95.90 a month is worth it!
You decide that it is not worth it to add $95.90 a month.
You will be able to add $10,000.00 from an investment that will come due March 1, 2007.
You should be able to deposit the money on March 5, 2007
Reenter your data to match the original 1st and 15th solution.
We will add a Lump Sum of $10,000.00
§ Starting Value - Enter 25678.88
§ Pac Start Date - Enter 02/01/2002
§ End Date - Enter 01/31/2020
§ 1st of month - Enter $54.10
§ 15th of month - Enter $54.10
§ Lump Sum - Enter 10000
§ Deposit Date - 03/05/07
§ End Value - Enter 114721.96
§ ROI [%] - Enter 6
You then Click the ? beside the End Date field
You will be able to retire August 8, 2017
This is 2 years 5 months and 20 days years earlier.
This is only one example of enumerable solutions.
Return Calculator With Taxes
Marginal Tax Rates (MTR) - try the following web pages
United States http://www.irs.gov/prod/ind_info/tax_tables/tax_sched.html
Canada http://www.ccra-adrc.gc.ca/tax/individuals/faq/2000_rate-e.html#1
World Taxpayers Associations http://www.worldtaxpayers.org/statmarg.htm
The Return Calculator With Taxes is designed to allow users to find the after tax income from their investments.
On the right side of the input area you can input a % of Capital Gains that is taxable useful for Canadians and other
countries that use percentages of Capital Gains that are taxable.
Other countries can input a specific amount of Capital Gains that is exempt from tax.
Generally you will use one or the other and not both.
One should be set to zero.
To set the % field, go to File in the main menu then properties to change the percentage.
The Recalculate button is used to recalculate the spreadsheet after a deposit/withdrawal is input directly in the
spreadsheet under the Other Deposits column.
You can input a monthly deposit or withdrawal in the Deposit field.
Enter all your information and click the Calc/Create button.
The spreadsheet is created.
Scroll down to find the period you want to analyze.
Under each column you can see the after tax amount available.
We want to know how much we will have in our portfolio in 25 years.
Marginal Tax Rate [MTR] [%] - Enter 22.5
Starting Value - Enter 102877.84
Start Date - Enter 12/03/1999 [December 3, 1999]
No. of Years - Enter 25
End Date is calculated and shows - 12/03/2024
We want to change the End Date so it aligns with our retirement date of June 1, 2024
End Date - Enter 06/01/24
You have look at your portfolio and decide that you should be able to achieve a return of 6.77%
Yearly Rate of Return [%] - Enter 6.77
You will deposit $350.00 into your account every month.
Deposit - Enter 350
Date of Birth - Enter your date of birth
For this example
Date of Birth - Enter 04/05/62 [April 5, 1962]
Under <Frequency>
Select the radio button to the left of Per Month
Under <Deposits/Withdrawals>
Select at Beginning of Period (We will make our $350.00 deposits on the 1st of the month)
The top of your screen should look something like this
On the right side of the input screen
Amount of Capital Gains That is Taxable [%]
We will change this to 50%
Under File in the Main Menu Select Properties
You are presented with the Change System Properties screen
Amount of Capital Gains that are Taxable - Enter 50
Click OK
Capital Gains Exempt Amount - Enter 0
You are finished entering data.
Under <Data Guide>
Click the Calc/Create button
The spreadsheet is created.
Your screen should look like this
Quick Look area
In the lower right side of the input area Balance as of = 05/31/24 (May 31, 2025)
Age = 62 (Your Age on that date)
Pre Tax Balance = 801,588.92 (The Balance as of May 31, 2024 before taxes)
Scroll down the spreadsheet until you reach the end.
You can see the Pre Tax Gross Value, Capital Gains, Interest, and 401K/RRSP after tax amounts.
If you withdraw all the funds you would receive
Capital Gains - $734,054.27 (Only 50% of your gains were taxable at 22.5%)
Interest - $667,531.43 (The entire growth is taxable not the deposits)
401K/RRSP - $621,231.41 (The money grows tax sheltered until withdrawn and is then 100% taxable, including your deposits. This does not include the tax refunds you received)
You decide that this is more than sufficient for you needs.
You would like to include in the plan a new boat when you are 55 years old.
Scroll up until you are at period 209 - 2 days before your birthday.
Select the cell under Other Deposits
Enter -40000 (do not forget the minus sign)
Under <Other Deposits> in the data input area
Click the Recalculate button
The spreadsheet recalculates and looks like this
Your Pre Tax Balance is $736,698.55
This is only one example of how you can use this calculator.
Data You Enter
Marginal Tax Rate [MTR][%]
Starting Value
Starting Value/Deposit Date
Start Withdrawal Date
Note 1: The Start Withdrawal Date may be any time after the Starting Value/Deposit Date. The calculator will calculate the growth until your Start Withdrawal Date has been reached.
No. Of Withdrawal Years
Note 2: You can enter the No. Of Withdrawal Years and the software will calculate the End Date. You can then change the End Date and the No. of Withdrawal Years will recalculate to indicate the new No. of Withdrawal Years.
End Date
Yearly Rate of Return
Withdrawal Amount
Date if Birth
<Frequency>
Select Per Month or Per Year
Amount of Capital Gains That is Taxable [%]
Enter the percentage of Capital Gains that will be taxed. In Canada it is currently 50%.
To reset the % select File then Properties. Enter the amount and click OK.
Capital Gains Exempt Amount
Generally you will use either the % or the Amount not both.
Calculated Fields
Age at Start Date
Age at Start Withdrawal Date
Balance as
Age
Pre Tax Balance
Enter known data
You can solve for either the Starting Value or the Withdrawal Amount.
Enter Marginal Tax Rate [MTR][%] 42
Enter Starting Value 750000
Enter Starting Value/Deposit Date 01/21/2002
Enter Start Withdrawal Date 01/22/2002
No. Of Years will automatically be calculated 28
Enter End Date 01/22/2030
Enter Yearly Rate of Return [%] 7.1
Withdrawal Amount 0
Enter Date of Birth 05/01/1949
<Frequency>
Select Per Year
Your screen should look like this
Amount of Capital Gains That is Taxable [%] 50%
If 50% is not in the field change it.
Select File then Properties from the main menu
Enter 50 in the Amount of Capital Gains that is Taxable field. Click OK
Capital Gains that are exempt 0
Age at Start Date Calculated 52
Age at Start Withdrawal Date Calculated 52
Under <Data Guide>
Click Calc/Create
You screen should look like this
Click the ? beside Withdrawal Amount
Enter End Balance Desired screen appears
You can use this field to enter an amount that you want to have at the end of the withdrawal period. You may want to leave an inheritance or perhaps an amount for burial expenses.
Enter 10000
Click OK
The Calculator solves the Withdrawal Amount 58,153.08
The Spreadsheet is filled in.
Enlarge the Calculator if it is not already. Click the center icon.
You can now see how much you can withdraw after tax by looking at the various columns in the spreadsheet.
For Example if this was a Capital Gains situation the after tax withdrawal amount at Period 13 - 01/22/2014 Age 64 is $49,969.78
You may want to take a lump sum during the withdrawals for a purchase such as a vehicle.
Go To the Spreadsheet Column Other Withdrawal
[Use a Minus Sign-]
Go down to period 14
Enter -25000 (Do not forget the minus sign)
Click Recalculate under Other Withdrawal
The only change you may notice is The Deficit = is now -129,898.00
Click the ? beside Withdrawal Amount.
For the End Balance screen enter 10000
The screen updates.
Your -$25000 withdrawal is missing and the Pre Tax Balance is 149,898.11
Enter the -25000 in the period 14 field again
Click Recalculate under Other Withdrawal
The Withdrawal Amount in the data input section is 56,560.94
The End Balance is now $9,999.93
The total Withdrawal is $81,560.94 in the spreadsheet.
Your regular withdrawal + Your Vehicle
56,560.94 + 25,000 = 81,560.94
This is just one example of the innumerable ways to use this calculator.
Other
Nominal vs. Effective Interest
Rates
You can solve all three fields or use the quick calculator if the number of compounding periods is 12.
If you are having trouble matching another calculators results try changing the interest rate you are using.
Try changing the number of compounding periods. For example 6 times per year.
For example if 5% is not working try the effective or nominal equivalent.
Why is the effective rate
important?
Loans can be calculated with different compounding periods. I.E. Monthly, Quarterly, Semi-Annually, Annually etc.
To protect the consumer in Canada, loan forms must state the effective rate. (Commonly referred to as Annual Interest Rate)
Annual compounding is the effective rate standard because interest rates are commonly expressed as Nominal annual rates. This makes it easy for people to compare rates and select the best rate when borrowing.
There is a formula for finding the Effective Rate... f = ( 1 + i )m - 1
where f is Effective Rate and m = number of compounds per year.
EXAMPLE
Find the effective rate for 18% compounded quarterly
i = .18 / 4 = 0.045
m = 4
f = ( 1 + i )m - 1
f = ( 1.045 )4 - 1
f = 1.192518601 - 1
f = 0.192518601
As a percent, f =
19.25%.
Bond Yield to Maturity Solver
This calculator uses a simple method to analyze a bond's yield to maturity (YTM).
Most newspapers will have the information you need to calculate the YTM.
If the Date Quoted is not given use today's date.
All you need to input is the
Coupon Rate
Date Quoted
Maturity Date
Amount Quoted
The Face Value is not required however most bonds are quoted based on a $100.00 value.
Click the ? beside the Yield To Maturity field to find the YTM.
The results will be very accurate however you should consult a bond professional for up to date valuations.
The Bonds in this example are quoted in Yahoo Finance with YTMs as follows
Dayton Hudson Corporation - 7.285
Countrywide Home Loans MTN BE - 6.904
Deere & Co. - 6.477
Conditions for use:
RWENT Inc. has thoroughly tested all calculations and believes them to be accurate; RWENT Inc. makes no warranties or representations of any kind, including warranties as to fitness for purpose or merchantability. By using this program you acknowledge that RWENT Inc. shall not be responsible for any damages resulting from the use of Financial Calculators by you or any other person, however caused.