Formula Hub

Body Mass Index (BMI) is a simple, widely used metric to estimate whether a person has a healthy body weight relative to their height. BMI categorizes individuals into underweight (under 18.5), normal weight (18.5 - 24.9), overweight (25 - 29.9), and obese (30 and above). It acts as a screening tool to identify possible weight problems for adults.

Basal Metabolic Rate (BMR) represents the minimum number of calories your body needs to function at rest (e.g. breathing, circulation, cell production, temperature regulation). BMR is estimated using the Mifflin-St Jeor equation, which is widely considered the most accurate standard for calorie planning.

Compound Annual Growth Rate (CAGR) is the geometric progression ratio that provides a constant rate of return over a specified time period. It is one of the best tools for comparing investment returns across different assets (like mutual funds vs gold vs FDs) over multi-year horizons because it smooths out volatility.

Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. Unlike simple interest, compound interest allows your money to grow exponentially because you earn interest on interest.

The discount formula calculates the price reduction on a product or service. By subtracting the discount amount from the original price, you get the final sales price.

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. The EMI is structured to pay off both the interest and the principal balance of a loan over a set period. In the early stages of the loan, a larger portion of the monthly payment goes toward interest, while in later stages, more goes toward the principal. This amortization schedule helps borrowers plan their monthly budget and track their path to debt freedom.

A Fixed Deposit (FD) is a secure investment offered by banks and financial institutions where you deposit a lump sum for a fixed tenure at a guaranteed interest rate. FDs usually calculate compound interest on a quarterly basis. It offers steady, predictable growth on capital.

Gratuity is a lump-sum payment made by an employer to an employee as a token of appreciation for services rendered, typically after completing 5 or more years of continuous employment.

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services. When computing transactions, you either add GST to find the final customer price, or subtract (remove) GST from the final retail price to find the pre-tax base cost.

House Rent Allowance (HRA) exemption is calculated under Section 10(13A) of the Income Tax Act. It determines the tax-exempt portion of the HRA received by salaried individuals living in rented accommodations.

Income tax is computed progressively based on income tax slabs. Taxpayers can choose between the Old Regime (which allows major deductions but has higher tax rates) and the New Regime (which has lower rates but restricts most deductions).

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings. Upon maturity at age 60, a portion of the corpus is paid as a lump sum, and the remaining must be invested in an annuity to provide a regular monthly pension.

The Public Provident Fund (PPF) is a popular long-term savings-cum-tax-saving instrument in India. It offers guaranteed interest rates set quarterly by the government, with tax-free returns and tax deductions under Section 80C.

A Recurring Deposit (RD) is a savings tool that allows individuals to deposit a fixed sum monthly for a predefined period. Similar to a Fixed Deposit, it offers a guaranteed rate of interest, usually compounded quarterly, but without requiring a large initial lump sum.

The retirement planning formula estimates the corpus required to sustain your current lifestyle during retirement. It accounts for inflation, which increases living costs, and calculates the necessary nest egg based on a real rate of return.

The salary formula converts a salary from one frequency (hourly, weekly, monthly, annual) to another. It helps professionals evaluate the real hourly worth of their compensation packages by factoring in scheduled work hours and unpaid leave.

Simple interest is a straightforward method of calculating interest charges on a loan or investment. Unlike compound interest, simple interest is computed only on the original principal amount. The interest earned remains constant during each period.

A Systematic Investment Plan (SIP) is a disciplined approach to mutual fund investing. Instead of deploying a large lump sum, investors commit a fixed amount periodically. This formula calculates the future value of a series of regular payments made at the start of each month (an annuity due), showing how compounding builds substantial wealth over time.

Splitting a bill calculates the individual financial share for a group of people. While equal splits distribute the total cost evenly, itemized splits allocate specific item charges to individuals, applying proportional shares of tax and tip. If some people paid upfront, the net owed or refund amount is computed from their payments.

Tax Deducted at Source (TDS) is a mechanism where the person responsible for making specific payments deducts income tax before releasing the funds to the payee. The tax deducted is credited to the payee's tax account (Form 26AS).