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Learn how to calculate this common formula in finance.

## In This Series

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1. Investing

### Mezzanine Financing

Discover the benefits and drawbacks of equity financing for a small business, and learn when equity financing should be used instead of debt financing.
4. Investing

### Calculating Operating Margin

Learn more about the measurement used to calculate what proportion of a company's revenue is left over after production costs.
5. Retirement

### How to Calculate the Value of Annuities

Here's everything you need to account for when calculating the present and future value of annuities.
6. Investing

### Calculating The Gain Or Loss On An Investment

Calculating the percentage of change in an investment is easy. Take the amount the investment gains and divide it by the amount invested.

### Return On Equity (ROE)

Return on equity is one of the basic metrics used to evaluate a company's stock. Find out what it can tell you about a stock and learn how to calculate it here.

### How To Calculate The Tax You Owe

Learn the basic information you need to calculate the taxes you'll owe the government this tax season.
9. Investing

### The Difference Between Finance And Economics

Learn the differences between these closely related disciplines and how they inform and influence each other.
Hot Definitions
1. ### Interest Expense

The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. ...
2. ### Call Option

An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
3. ### Pro-Rata

Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
4. ### Private Placement

The sale of securities to a relatively small number of select investors as a way of raising capital.
5. ### AAA

The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
6. ### Backward Integration

A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it ...