11 Personal Finance Equations Everyone Needs to Know


Math class
By Jill Krasny
and Zachry Floro

Math class may have seemed pointless back in the day, but it turns out all those confusing equations are quite useful.

Math can be used to solve every money problem, from how long it will take to pay off debt to how much one should save for a new home.

We've rounded up 11 math equations that can be used every single day. Write them down, whip out your pencil, and prepare to budget like a genius.

More from Business Insider

Increase your money and finance knowledge from home

Intro to Retirement

Get started early planning for your long term future.

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

A loan is a financial transaction in which one party - the lender - agrees to give another party - the borrower a specific amount of money which must be paid back in full.


July 16 2013 at 8:08 AM Report abuse rate up rate down Reply

The way you present all 11 tips are really in a great way, and that makes it easy to understand. It make investor to understand and calculate risk and benefits as well as it makes picture more clear to them. Again I would like to say nice technique to present your ideas

August 06 2012 at 8:47 AM Report abuse rate up rate down Reply

I think teaching personal finance in high schools would be a great start. It's important to know how to do a budget, how to save money by paying oneself first and learning some investment basics. We have calculators that will do this sort of math. I don't think this article and providing the formulas for these equations is going to get anyone's attention. Most people's eyes will glaze over.

August 01 2012 at 1:47 PM Report abuse rate up rate down Reply

All this, and other finacial topics, should be mandatory classes (like math, reading, etc) to graduate H.S. Probably be more useful in one's lifetime.

July 31 2012 at 9:21 PM Report abuse rate up rate down Reply

This article is not worth the time to read it. Fancy math equations are not what is need for financial stability (for individuals, companies, and government. Only the 4th priciple - Cash Flow is the big reason we are in trouble. In other words, use the old adage: 'Spend within your means!'

July 31 2012 at 6:18 PM Report abuse rate up rate down Reply

Unfortunately, the authors of this article may know their math equations but not the English language. Their reference to "principle" in "1.Amortization" above is totally inaccurate. The proper terminology is "principal".

Perhaps a proof read is in order given that they are providing instruction to the internet world. In fact, look at the chalk board above for the proper spelling.

July 31 2012 at 12:28 PM Report abuse +1 rate up rate down Reply