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