What Are the Benefits of a Financial Calculator?

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Financial calculators help you calculate complex formulas efficiently.
Financial calculators help you calculate complex formulas efficiently. (Image: Calculator image by Alhazm Salemi from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Accountants, businessmen, financiers and students can benefit from a good financial calculator. Unlike a normal calculator or a scientific calculator, a finance calculator is geared more toward finance problems. The finance calculator will quickly reduce long complex complications for finance-related questions. This increases the user's efficiency at performing his job.

Time Value of Money Problems

A financial calculator will allow the user to enter information for calculating time value of money problems. As an example, an investor deposits $500 each year into a bank account that earns 5 percent interest. How much money will he have in the account in six years? A financial calculator will allow the user to enter the different terms in this problem and will calculate the result. This eliminates the need of longer time value of money formulas.

Basic Statistics

A financial calculator can calculate some basic statistics such as weighted averages, linear regressions and correlations. This eliminates the need to go step by step to perform these calculations, but will automatically perform the calculation after entering the data.

Finance Problems

One of the best benefits of a financial calculator is their use in finance problems. Most financial calculators will be able to calculate problems for discounted cash flows, internal rates of returns, loan formulas, net present value and markup calculations.

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