This financial calculator provides users powerful and easy-to-use financial calculators. Users can always look description part of calculator when they get confused so that they can reach descriptions and examples of the calculator. Our financial calculator has many useful calculators which are** Mortgage Calculator, Time value of Money (TVM) Calculator, Net Present Value (NPV) Calculator, Compound Interest Calculator, Return on Investment (ROI) Calculator, Bond Calculator, Stock Caclulators, Tip Calculator.**

Stock Calculators also have seven handy, important financial calculators. They are the following: **Black Scholes Calculator, Capital Asset Pricing Model(CAPM) Calculator, Constant Growth Stock Calculator, Nonconstant Growth Stock Calculator, Weighted Average Cost of Capital(WACC) Calculator, Holding Period Return Calculator, Expected Return Calculator.**

**Mortgage calculator** provides you to estimate monthly mortgage payments. Just enter your home's value, down payment, loan term, and annual interest rate, so you can easily calculate your monthly mortgage payment.

**Time value of money** is one of the most significant concept in finance. Basically, we can define the time value of money as the difference in value between money today and money in the future [1].

The time value of money concept refers the following fact: receiving money today is worthy more than the same amount's receipt some time in the future [1].

The amount of money a cash flow will grow to at some time in the future by earning interest at some interest rate is defined as **future value** [1].

**Present value** is calculated by doing revese of the calculation of future value. While calculating present value, one thinks about the amount he/she needs to invest today to get a certain amount in the future [1].

Our Time Value of Money Calculator can also be called as present value(pv) calculator or future value(fv) calculator since one can calculate future value, present value, interest rate, period and payment by selecting frequency and mode.

**Return on Investment (ROI)** is a calculation which examines the amount of additional profits produces because of a certain investment [2].

Return on Investment(ROI) is used to compare different scenarios for investments by businesses so that they try to observe which scenario produces the greatest profit and benefit for the company. On the other hand, one can use ROI calculator for other forms of investments like buying a car [2].

If return on investment is postive, it means that you earned more than the cost you investigated. If ROI is zero, your gains are same as your costs. If ROI is negative, the cost is greater than the gains [2].

By using Return on Investment Calculator, **Gain or Loss**, **ROI** and **Annualized Roi** can be calculated.

Before we explain compund interest, let's define interest and simple interest. If money is borrowed, we should pay for the use of that money. If one lends money, he/she will be paid for this. So we define **interest** as the price of borrowing or lending money. The simplest interest type of interest, as it can be understood from its name, is **simple interest** [3].

If we multiply invested amount by interest rate(per annum) and length of time(in years) and divide the result by 100, we obtain simple interest.

**Compound interest** calculation is not as simple as simple interest. The interest accumulated each year is appended to the principal, then for each subsequent year interest is earned on this total of principal and interest. Hence, the interest compounds. This is the reason of the word **compound** of compound interest [3].

Users can calculate **Total Principal**, **Interest Amount**, **Balance**, and **APY(Annual Percentage Yield)** by using our Compound Interest Calculator.

**Net present value (NPV)** of an investment is defined as the difference between the present value of its benefits and the present value of its costs. According to [2], NPV desicion rule is defined as the following: "Accept a project/investment if its NPV is positive. Reject a project/investment if its NPV is negative." So, net present value (npv) measures the dollar change in one's wealth as a result of his/her choice.

Another desicion rule [2] is that "Accept an investment if its return is greater than the opportunity cost of capital". This rule also known as **internal rate of return (IRR)**. The IRR is defined as the discount rate which makes the present value of the cash inflows equal to the present value of the cash outflows. So, this means that we can define IRR as the discount rate where NPV is zero.

If you use our Net Present Value (NPV) calculator, you can calculate NPV and IRR by entering **period**, **discount rate**, and **cash flows**.

We can call **bond** as a contract or certificate of debt in which a definite sequence of interest payments is paid by the issuer to the holder for specified period of time, and issuer promises to repay the loan at a specified terminal date which is defined as **maturity** or **redemption date** [4].

There are many risks while investing in bonds such as **interest-rate risk**, **default risk**, **reinvestment risk**, **call risk**, **inflation risk**.

The following terms are generally used when calculating bond:

**Face value** is the amount printed on the bond. It is also known as principal value or par.

**Redemption value** or **maturity value** is the amount that the issuer promises to pay on the re- demption date [4].

**Time to maturity** is the time's length before the maturity value is repaid to the investor [4].

The rate at which the bond pays interest on its face value at regular time intervals until the redemption date is defined as the **coupon rate** [4].

Our Bond Calculator is a powerful calculator which can calculates **Bond Value**, **Maculay Duration**, **Modified Duration**, and **Convexity**.

European options, which assumes they should be held to expiration, and related custom derivatives can be priced by using **Black-Scholes model**. This model considers that we have the option of investing in an asset earning the risk-free interest rate [5].

The model states that the higher the volatility we have, the higher the premium on the option we have [5].** Volatility** corresponds to the standard deviation of the annual rate of return. A **call option** is called as a forward contract to deliver stock at a contractual price, which is also called as **strike price**, in the Black-Scholes model [5].

According to Black-Scholes approach, while volatility is important, drift is not important. If expiration is approached, the option's premium will suffer from time decay.(This is known as **Theta** in the European model. The premium of option, **Vega**, is contributed by the volatility of stock [5].

**Delta** is the sensitivity of the option to a change in the value of stock. Then, **Gamma** is defined as the rate of this sensitivity. These are important terms in Black-Scholes approach. Also, if we have a **risk-free choice**, option values come in view from **arbitrage** opportunities [5].

**Capital Asset Pricing Model (CAPM)** states that the equilibrium rates of return on all risky assets are their covariance's linear function with the market portfolio [6]. The assumption of CAPM is that there is a linear relationship between the expected return in a risky asset and its beta, which drives average returns. **Beta** is defined in [6] as the following: it measures how much the inclusion of additional stock to a well diversified portfolio increases the inherent risk and volatility of the portfolio.

Users can calculate **Expected Stock Return**, **Expected Market Return**, **Risk Free Rate**, and **Beta** by using our powerful and efficient Capital Asset Pricing Model (CAPM) Calculator.

The **dividend discount model** states that the value of a stock is the present value of expected dividends on it [7].

**Gordon growth model** describes the relation between the value of a stock to its expected dividends in the next time period, the cost of equity and the expected growth rate in dividends. This model is simple and useful approach to valuing equity [7].

Our constant growth stock calculator is based on dividend discount model and Gordon growth model. So, users can calculate **price of stock** by using **dividend type**, **dividend**, **required rate of return** and **growth rate**.

If the growth is expected to change when time goes on, we call this growth as **nonconstant growth stock valuation**. non-constant growth in dividend is common scenario since generally companies has a cycle as the following: they have rapid growth in the developing stage, they have slowing growth in the maturing stage, and finally they have declining growth for their final stage. Also, acquisitions and divestitures can cause changes in growth for companies. [8].

Our non-constant growth stock valuation calculator is a powerful and responsive with the **period**, so that **price of stock for nonconstant growth stock valuation** can be calculated easily.

Let's first define **cost of capital**. Cost of capital is the opportunity cost of all capital invested in an enterprise [9].

**Weighted average cost of capital** is defined as the weighted average of the after-tax component costs of **capitalâ€”debt**, **preferred stock**, and **common equity** [10].

If users know **cost of equity**, **equity**, **cost of debt**, **debt**, **corporate tax rate**, then **weighted average cost of capital (wacc)** can be calculated easily.

Let's say we buy and **asset** at time t0 for the price Pt0, and we will sell this asset at time t1 for the price Pt1 and I denotes **income**. Here, asset can be stock, bond, ETF, mutual fund, option, etc. Then **holding period return (hpr)** can be defined as: (Pt1 + I - Pt0) / Pt0. **Holding period** is the time between t0 and t1 [11].

**Expected return** calculator is powerful and responsive with period, so users can calculate expected return and **standard deviation** of it easily.

The measure of the center of the distribution of the variable can be obtained by expected return.

- Time Value of Money. (n.d.). Retrieved from http://mafcstudents.mq.edu.au/ linkservid/61830557-C73A-33F5-70B73F57BB8510E5/showMeta/0/
- Major, S. (n.d.). Return on Investment (ROI). Retrieved from http://jwilson.coe.uga.edu/ EMAT6450/Class%20Projects/ Major/ Teacher%27s%20Guide%20ROI.pdf
- Principals of financial mathematics. (n.d.). Retrieved from http://www.cambridge.edu.au/ downloads/education/extra/209/ PageProofs/ Further%20Maths%20TINCP/ ch%2020.pdf
- Bonds and Bond Pricing. (n.d.). Retrieved from http://www.mysmu.edu/faculty/ yktse/FMA/S_FMA_6.pdf
- The Black Scholes Model. (n.d.). Retrieved from http://pages.hmc.edu/ evans/e136l9.pdf
- Bhatnagar, C. S., & Ramlogan, R. (n.d.). THE CAPITAL ASSET PRICING MODEL VERSUS THE THREE FACTOR MODEL: A United Kingdom Perspective.
- Dividend discount models. (n.d.). Retrieved from http://pages.stern.nyu.edu/ ~adamodar/pdfiles/ valn2ed/ch13.pdf
- Dividend valuation models. (n.d.). Retrieved from http://educ.jmu.edu/ ~drakepp/FIN362/ resources/dvm.pdf
- The Weighted Average Cost of Capital. (n.d.). Retrieved from http://pages.stern.nyu.edu/ ~igiddy/articles/wacc_tutorial.pdf
- The cost of capital. (n.d.). Retrieved from http://www2.gsu.edu/ ~fnccwh/pdf/11fm9.pdf
- Return calculations. (n.d.). Retrieved from https://faculty.washington.edu/ ezivot/econ424/ returnCalculations.pdf