Mathematical & Financial Formula Hub

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Kirana Wholesale Margin & Landing Cost Formula

$$\text{Landing Cost / Unit} = \frac{\text{Billed Price} \times (1 - \text{TD}) \times (1 - \text{CD}) + \text{Non-ITC GST} + \text{Freight}}{\text{Billed Units} \times \left(1 + \frac{\text{Free Units}}{\text{Paid Units}}\right)}$$

The Kirana wholesale landing cost formula determines the true per-piece acquisition cost for grocery retailers, supermarkets, and FMCG distributors. Rather than using the gross rate printed on distributor invoices, this formula cascades sequential trade discounts, cash settlement rebates, tax credit adjustments, and quantity bonus schemes (Buy X Get Y Free) across the total physical units delivered.

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Layoff Financial Survival Runway Formula

$$\text{Total Liquid Reserves} = \text{Emergency Savings} + \text{Net Severance Package} + \text{PF/Gratuity Access}$$ $$\text{Survival Runway (Months)} = \frac{\text{Total Liquid Reserves}}{\text{Essential Monthly Living Outflow} - \text{Spouse / Secondary Income}}$$

A Financial Runway calculates the precise number of months a household can comfortably survive during sudden unemployment, job loss, or career sabbatical without resorting to distress asset sales or predatory debt. The formula evaluates total liquid capital against a stripped-down emergency survival budget (essential necessities minus alternative income streams), empowering professionals to plan an orderly job search strategy.

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Loan Prepayment vs SIP Investment Opportunity Cost Formula

$$\text{Interest Saved} = \sum_{t=1}^{n_{\text{orig}}} I_{\text{orig}}(t) - \sum_{t=1}^{n_{\text{prep}}} I_{\text{prep}}(t)$$ $$\text{SIP Future Wealth} = P_{\text{SIP}} \times \frac{(1 + r_{\text{SIP}})^m - 1}{r_{\text{SIP}}} \times (1 + r_{\text{SIP}})$$ $$\Delta \text{Net Wealth Difference} = \text{SIP Future Wealth} - \text{Total Interest Saved}$$

The Loan Prepayment vs Investment decision is a classic corporate finance and personal wealth dilemma. Prepaying a debt provides a guaranteed, risk-free return equivalent to the effective post-tax loan interest rate (e.g., 8.5%–9.5%). In contrast, investing surplus capital into a diversified Equity SIP targets a higher expected historical return (12%–14%), but carries market volatility risk. This formula quantifies the mathematical wealth difference between total interest saved versus terminal investment compounding.

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Lumpsum Mutual Fund Formula

$$A = P \times \left(1 + \frac{r}{n}\right)^{n \cdot t}$$

The Lumpsum Mutual Fund Formula calculates the future value of a one-time upfront investment based on compound interest. It models how capital appreciates over time when 100% of the funds compound continuously or periodically.

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Net Worth Formula

$$\text{Net Worth} = \sum \text{Total Assets} - \sum \text{Total Liabilities}$$

The Net Worth Formula calculates an individual or household's net wealth standing by taking the market value of all asset holdings and subtracting total debt obligations. A positive net worth signifies solvency, while a negative net worth indicates liabilities exceed assets.

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Notice Period Buyout & Full and Final (FnF) Settlement Formula

$$\text{Notice Shortfall Recovery} = \left(\frac{\text{Monthly Basic Salary} + \text{Dearness Allowance}}{30}\right) \times \text{Shortfall Days}$$ $$\text{Net FnF Settlement} = (\text{Unpaid Salary} + \text{Leave Encashment} + \text{Gratuity} + \text{Bonus}) - (\text{Notice Recovery} + \text{Statutory PF/TDS} + \text{Asset Dues})$$

When an employee resigns from an organization in India, the employer computes the Full and Final (FnF) settlement. If the departing employee cannot serve the mandatory contractual notice period (typically 30, 60, or 90 days), the employer calculates a Notice Period Buyout / Recovery amount based on unserved days. Indian labor court precedents establish that notice buyout recovery must strictly be calculated on Basic Salary plus DA, rather than Total CTC (Gross), unless an explicit valid clause stipulates otherwise.

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NPS Formula

$$\begin{aligned} A &= P \times \frac{(1 + r)^n - 1}{r} \times (1 + r) \\ \text{Pension} &= A \times \text{Annuity\%} \end{aligned}$$

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.

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Ola & Uber Driver Profitability Formula

$$\text{Net Daily Profit} = (\text{Gross Trip Fares} + \text{Incentives} + \text{Tips} - \text{Platform Commission}) - (\text{Fuel Cost} + \text{Daily EMI/Rental} + \text{Maintenance} + \text{Tolls})$$ $$\text{Effective Hourly Rate} = \frac{\text{Net Daily Profit}}{\text{Total Shift Driving \& Waiting Hours}}$$

Ride-hailing driver earnings from platforms like Ola, Uber, and Rapido are often misjudged because gross app earnings do not reflect heavy recurring vehicle operating costs. Drivers must account for 20%–25% platform commissions, fuel/CNG consumption (including dead mileage driven to reach pickups), monthly vehicle financing EMIs, commercial insurance, municipal road taxes, and regular wear-and-tear maintenance. Dividing net in-pocket earnings by total shift hours gives the true hourly compensation.

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PPF Formula

$$F = P \times \frac{(1 + r)^n - 1}{r} \times (1 + r)$$

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.

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Profit Margin & Markup Formula

$$\text{Gross Margin (\%)} = \frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100, \quad \text{Markup (\%)} = \frac{\text{Revenue} - \text{COGS}}{\text{COGS}} \times 100$$

Profit margin evaluates profitability as a percentage of total selling revenue, while cost markup calculates profit as a percentage of purchase/production cost.

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