Universal Financial
Calculator Guide
A comprehensive interactive reference covering every formula, parameter, and worked example across all FinCalc Pro modules.
Time Value of Money (TVM)
The cornerstone of all financial mathematics: a rupee today is worth more than a rupee tomorrow because money available now can be invested to earn a return. Every present-value and future-value computation in FinCalc Pro derives from this single axiom.
Discounting & Net Present Value
To compare cash flows at different points in time, we bring all amounts to a common reference — usually today — using a discount rate reflecting risk and opportunity cost. The NPV of a project is the sum of all discounted cash flows including the initial outlay.
A higher discount rate assigns less value to distant cash flows, making long-duration projects more sensitive to rate changes — exactly what bond duration measures.
Risk, Return & Diversification
Higher expected returns always come with higher risk. FinCalc Pro quantifies this trade-off using variance and standard deviation as measures of total risk, and correlation to measure co-movement between assets.
Bond Pricing & Interest Rate Sensitivity
A bond's fair price equals the present value of all future coupon payments plus the face value, discounted at the yield to maturity (YTM). Price and yield move inversely.
Derivatives & Option Greeks
The Black-Scholes-Merton (BSM) model prices European options under assumptions of log-normal asset prices, constant volatility, and continuous trading. The five Greeks measure sensitivities of option value to underlying parameters.
Option Trading Strategies — 19 Built-in Strategies
FinCalc Pro includes 19 option strategies across four categories. Every strategy computes exact breakevens, max profit/loss, a payoff diagram, and a P&L matrix table — all exportable to PDF and CSV.
| Category | Strategy | View | Max Profit | Max Loss |
|---|---|---|---|---|
| Basic Option Strategies | ||||
| Basic | Long Call | Bullish | Unlimited | Premium paid |
| Basic | Short Call | Bearish/Neutral | Premium received | Unlimited |
| Basic | Long Put | Bearish | K − Premium | Premium paid |
| Basic | Short Put | Bullish/Neutral | Premium received | K − Premium |
| Directional Spreads | ||||
| Spread | Bull Call Spread | Moderately Bullish | K₂−K₁−Net Cost | Net Premium |
| Spread | Bull Put Spread | Moderately Bullish | Net Credit | K₁−K₂−Credit |
| Spread | Bear Call Spread | Moderately Bearish | Net Credit | K₂−K₁−Credit |
| Spread | Bear Put Spread | Moderately Bearish | K₁−K₂−Net Cost | Net Premium |
| Spread | Long Combo | Strongly Bullish | Unlimited | Unlimited |
| Hedging & Income | ||||
| Hedge | Synthetic Long Call | Bullish + Protected | Unlimited | S₀−Kₚ+Premium |
| Hedge | Covered Call | Neutral/Bullish | Kc−S₀+Premium | Unlimited (stock→0) |
| Hedge | Protective Call | Bearish + Protected | Unlimited (stock→0) | Kc−S₀+Premium |
| Hedge | Covered Put | Bearish/Neutral | S₀−Kₚ+Premium | Unlimited (stock rises) |
| Hedge | Collar | Conservative Bullish | Kc−S₀−Net Cost | S₀−Kₚ+Net Cost |
| Volatility Strategies | ||||
| Volatility | Long Straddle | High Vol Expected | Unlimited | Total Premium |
| Volatility | Short Straddle | Low Vol Expected | Total Credit | Unlimited |
| Volatility | Long Strangle | High Vol, Cheap | Unlimited | Total Premium |
| Volatility | Short Strangle | Low Vol, Wide Range | Total Credit | Unlimited |
| Range & Volatility Spreads | ||||
| Range | Long Call Butterfly | Neutral, Low Vol | K₂−K₁−Net Cost | Net Cost |
| Range | Long Call Condor | Neutral, Wider Range | K₂−K₁−Net Cost | Net Cost |
| Formula Name | Mathematical Expression | Module |
|---|---|---|
| Future Value | FV = PV × (1+r)ⁿ | TVM, FD |
| Present Value | PV = FV / (1+r)ⁿ | TVM, Bonds, NPV |
| Implied Rate | r = (FV/PV)^(1/n) − 1 | TVM, Returns |
| Periods Required | n = ln(FV/PV) / ln(1+r) | TVM |
| FV Annuity (ordinary) | FVA = PMT × [(1+r)ⁿ − 1] / r | TVM, RD |
| PV Annuity (ordinary) | PVA = PMT × [1 − (1+r)⁻ⁿ] / r | TVM, Loans |
| Perpetuity | PV = PMT / r | TVM |
| Growing Perpetuity | PV = PMT / (r − g), requires r > g | TVM, DDM |
| EMI (Reducing Balance) | EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ − 1] | Banking |
| FD Maturity (Cumulative) | A = P × (1 + r/q)^(q×t) | Banking |
| RD Maturity | M = Σ R × (1 + r_q)^(quarters remaining) | Banking |
| Bond Price | P = Σ C/(1+y)ᵗ + FV/(1+y)ⁿ | Bonds |
| Macaulay Duration | D = Σ [t × PV(CFₜ)] / P | Bonds |
| Modified Duration | MD = D / (1 + y) | Bonds |
| Convexity | Conv = Σ [t(t+1) × CF / (1+y)^(t+2)] / P | Bonds |
| Expected Return | E(R) = Σ pᵢ × Rᵢ | Risk & Return |
| Variance | σ² = Σ pᵢ × (Rᵢ − E(R))² | Risk & Return |
| Covariance | Cov = Σ pᵢ × (R₁ᵢ − Ē₁)(R₂ᵢ − Ē₂) | Risk & Return |
| Correlation | ρ₁₂ = Cov(R₁,R₂) / (σ₁ × σ₂) | Risk, Portfolio |
| Portfolio Return | E(Rₚ) = w₁R₁ + w₂R₂ | Portfolio |
| Portfolio Variance | σₚ² = w₁²σ₁² + w₂²σ₂² + 2w₁w₂Cov₁₂ | Portfolio |
| CAPM | E(Rᵢ) = Rƒ + βᵢ × (E(Rₘ) − Rƒ) | Portfolio |
| Futures P&L (Long) | P&L = Sₜ − F₀ | Derivatives |
| Option Intrinsic (Call) | max(Sₜ − K, 0) | Derivatives |
| Black-Scholes Call | C = S·N(d₁) − K·e^(−rT)·N(d₂) | Derivatives |
| Black-Scholes Put | P = K·e^(−rT)·N(−d₂) − S·N(−d₁) | Derivatives |
| Delta (Call) | Δ = N(d₁) | Derivatives |
| Gamma | Γ = φ(d₁) / (S × σ × √T) | Derivatives |
| NPV | NPV = Σ CFₜ / (1+r)ᵗ, t=0 to n | Corporate Finance |
| IRR | 0 = Σ CFₜ / (1+IRR)ᵗ [bisection] | Corporate Finance |
| WACC | (E/V)×Rₑ + (D/V)×Rᵈ×(1−Tᶜ) | Corporate Finance |
| ROE / ROA | NI/Equity | NI/Assets | Ratios |
| Current / Quick Ratio | CA/CL | (CA−Inv)/CL | Ratios |
| P/E & P/B Ratio | Price/EPS | Price/(Book/Share) | Ratios |
| Simple Return | R = (P₁ − P₀ + D) / P₀ | Market Tools |
| Log Return | r = ln(P₁ / P₀) | Market Tools |
| Annualized Volatility | σ_ann = σ_periodic × √freq | Market Tools |
| Sharpe Ratio | (Rₚ − Rƒ) / σₚ | Market Tools |