Mathematical & Financial Formula Hub

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RD Formula

$$M = \sum_{i=1}^{k} P \times \left(1 + \frac{r}{4}\right)^{4 \times \frac{k - i + 1}{12}}$$

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.

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Retirement Formula

$$\text{Target Corpus} = \text{Annual Expenses} \times \frac{1 - (1 + i)^{-n}}{i}$$

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.

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Salary Formula

$$\text{Hourly Wage} = \frac{\text{Annual Salary}}{\text{Weeks per Year} \times \text{Hours per Week}}$$

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.

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Savings Goal Formula

$$PMT = \frac{FV - PV \times (1 + r)^n}{\frac{(1 + r)^n - 1}{r}}$$

The Savings Goal Formula is a reverse sinking fund calculation that computes the exact recurring deposit amount (PMT) required to reach a target future financial goal (FV) within a designated timeline. It factors in starting savings balance (PV), periodic compound interest growth (r), and contribution frequency (monthly, weekly, or annually).

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Security Deposit Refund & Lawful Deductions Formula

$$\text{Lawful Net Refund} = \text{Original Deposit Paid} - (\text{Unpaid Rent} + \text{Pending Utility Bills} + \text{Valid Tenant Damage Invoices})$$ $$[\text{Normal Wear \& Tear Repainting / Routine Maintenance Deductions} \equiv 0]$$

Under Indian tenancy jurisprudence and the central Model Tenancy Act 2021, a security deposit is a trust fund held by the landlord to guarantee against unpaid rent and tenant-caused damage. Landlords frequently make arbitrary deductions for routine property repainting, minor scuff marks, and normal wear-and-tear. The law establishes that capital property maintenance and ordinary weathering are the sole financial responsibility of the landlord, and deductions are legally valid only when supported by move-in comparison evidence and genuine repair tax invoices.

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Simple Interest Formula

$$SI = \frac{P \times R \times T}{100}$$

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.

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SIP Formula

$$M = P \times \frac{(1 + i)^n - 1}{i} \times (1 + i)$$

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.

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Split Bill Formula

$$\text{Share} = \frac{\text{Total Bill} + \text{Tip} + \text{Tax}}{\text{Number of People}}$$

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.

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Sukanya Samriddhi Yojana (SSY) Maturity Formula

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

Sukanya Samriddhi Yojana (SSY) compounds interest annually on deposits made for up to 15 years. The account matures after 21 years from account opening, accumulating tax-free returns under Section 80C.

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Swiggy & Zomato Restaurant Net Payout & Profit Formula

$$\text{Net Payout} = (\text{Item Total} + \text{Packaging} - \text{Discount Share}) - \text{Platform Commission} - \text{PG Fee} - \text{GST Deductions} - \text{TCS/TDS}$$ $$\text{Net In-Pocket Profit} = \text{Net Payout} - \text{Food Cost (COGS)} - \text{Allocated Kitchen Overheads}$$

Online food delivery aggregator platforms like Swiggy and Zomato deduct multiple service charges before releasing weekly merchant payouts. These deductions include base platform commissions, 18% GST on aggregator commission and payment gateway fees, Section 194O TDS (1%), Section 52 TCS (0.5%–1%), and customer-funded discount splits. To determine true cloud kitchen or dine-in restaurant delivery profitability, owners must reconcile gross order value against raw material cost of goods sold (COGS) and fixed kitchen operational overheads.

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