Effective vs nominal rate
12% compounded monthly is 12.68%. That difference is the covenant you either pass or fail.
- Runs
- In this tab
- Data sent
- None
- Rounding
- Once, at the end
- Also in
- The Chrome extension
Effective vs nominal rate, worked
Showing a worked example — type over it
Result
Where these numbers come from.
Negatives are parenthesised because that is what a statement does. The rest is four promises.
Minor units, never floats
Amounts are integers in the currency's smallest unit, end to end. A float never touches a cent.
Rounded once
Rounded once, at the end — never per operand, which is how a split stops summing to the whole.
Unit tested
The arithmetic lives in one unit-tested module, shared without reimplementation with the extension.
No network
There is no request to make. What you type stays in this tab and is gone when you close it.
More in money maths
- VAT / sales taxGross to net is a division, not a multiplication. The three figures always add back up.
- Margin & markupThey are not the same number, and confusing them is how a price list quietly loses money.
- FX conversion & gain/lossThe rate is the one in your policy, so you type it. No live rate, no network call, no stale surprise.
- Penny-exact allocationSplit 100.00 three ways and get 33.34 / 33.33 / 33.33 — never a cent left in suspense.
- NPV, IRR & XIRRIRR by bisection, so a sign-change-heavy series does not converge on a confident wrong answer.
The same number, elsewhere.
A calculator answers the question once. These carry the answer into a product, name what it computed, and argue the method.
- ComponentCovenantMonitorThe contractual definition, not the generic one.
- ComponentRateLineA rate with its timestamp. Never one without the other.
- ComponentMetricDefinitionEvery metric requires one. Formula with values substituted.
- TermInterest coverageInterest coverage is a leverage and coverage metric, calculated as EBIT ÷ Interest expense.
- TermDSCRDSCR is a leverage and coverage metric, calculated as Cash available for debt service ÷ Debt service (interest + scheduled principal).
- TermLeverage ratioLeverage ratio is a leverage and coverage metric, calculated as Net debt ÷ EBITDA (or total debt ÷ EBITDA).
- DocMetric definitionsEvery metric in this system ships with its formula, its period, its inputs, and its source. A KPI without a definition is a number people argue about in meetings.