How ToolFin Calculates Financial Results

What Our Calculators Provide

ToolFin calculators are designed to provide mathematical estimates based on standard financial formulas. They are intended for educational exploration and scenario planning, helping users understand the relationship between different financial variables.

Core Formulas

• Amortization: Used in mortgage and loan calculations to determine how payments are split between principal and interest over time.
• Compound Growth: Calculates the future value of an investment where interest is earned on both the initial principal and the accumulated interest.
• ROI (Return on Investment): Measures the percentage gain or loss on an investment relative to its initial cost.
• Annualized ROI (CAGR): Estimates the mean annual growth rate of an investment over a specified period.

Assumptions & Defaults

Calculations often assume constant interest rates and consistent contribution frequencies throughout the entire period. In reality, market conditions and personal circumstances may change, which will lead to different outcomes than those shown in our estimates.

Regional Differences

ToolFin provides a global currency selector (USD, EUR, GBP, CAD, AUD) for convenience. However, our core calculators use standard mathematical logic that does not automatically account for regional taxes, local lending laws, or specific national social security systems unless specifically input by the user.

Rounding and Display

Results are typically rounded to the nearest whole number or two decimal places for readability. While we aim for precision, these rounding differences mean that total sums might slightly vary from exact bank statements.

What ToolFin Does NOT Do

ToolFin does not track your personal data, store your financial history, or provide personalized conclusions. We do not evaluate your creditworthiness or suggest specific products. Our role is strictly to provide the mathematical engine for your own scenarios.