Before multiplying, convert the percentage to decimal format by dividing by 100. If you purchased 1,000 of the example widgets for a total cost of $40,000, multiplying by 1.50 calculates the total ...

An example Let's say your lender offers you a $200,000 mortgage at 4% interest. The lender charges one discount point ($2,000) and an origination fee of $750, making the total up-front cost $2,750 ...

Rather, the bills are sold at a discount to their redemption price. For example, a Treasury bill with a face value of $1,000 might sell for $985.

For example, assume a company's cash flow valuation is $300,000, the discount rate is 9 percent and you want to compound the valuation for a 10-year holding period. Add 1 to the discount rate.

It makes sense to calculate their percentage overages next. Using the same math, the materials cost was 5.4% over budget, and the equipment rental was 4.7% over budget.

Changing the loan amount in the calculator back to $200,000, and trying out a few interest rates, shows that an interest rate of 4.11% would produce that same $968 monthly payment.