📖 Calculator Glossary
Clear definitions for financial, health, and business terms used in our calculators.
A
Amortization Finance
The process of spreading out a loan into a series of fixed payments over time. Each payment includes both principal (the loan amount) and interest.
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APR (Annual Percentage Rate) Finance
The total yearly cost of a loan expressed as a percentage. APR includes the interest rate PLUS fees, making it a more accurate measure of borrowing cost than the interest rate alone.
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Calculate true borrowing costs with our loan calculator.
B
BMI (Body Mass Index) Health
A measure of body fat based on height and weight. Calculated as weight (kg) divided by height (m) squared. Used as a quick screening tool, though it doesn't account for muscle mass.
• Under 18.5 = Underweight
• 18.5-24.9 = Normal
• 25-29.9 = Overweight
• 30+ = Obese
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BMR (Basal Metabolic Rate) Health
The number of calories your body burns at complete rest, just to maintain basic life functions like breathing, circulation, and cell production. This is your minimum daily calorie need.
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Calculate your daily calorie needs.
Break-Even Point Business
The point where total revenue equals total costs—no profit, no loss. Essential for pricing decisions and understanding how many units you need to sell to be profitable.
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Calculate how many sales you need to profit.
C
COGS (Cost of Goods Sold) Business
The direct costs of producing goods sold by a company. Includes raw materials, direct labor, and manufacturing costs. Does NOT include overhead like rent or marketing.
Compound Interest Finance
Interest calculated on both the initial principal AND accumulated interest from previous periods. This is why investments grow exponentially over time—"interest on interest."
• Simple interest: $31,000
• Compound interest: $76,123
The power of compounding adds $45,000!
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D
DTI (Debt-to-Income Ratio) Finance
The percentage of your gross monthly income that goes toward paying debts. Lenders use this to assess your ability to manage monthly payments and repay borrowed money.
• Housing costs should be ≤28% of gross income
• Total debt payments should be ≤36% of gross income
• Most lenders require DTI under 43% for mortgages
E
Escrow Finance
A financial arrangement where a third party holds and regulates payment of funds. In mortgages, your lender may hold money in escrow to pay property taxes and insurance on your behalf.
G
Gross Profit Business
Revenue minus the cost of goods sold (COGS). Shows how efficiently you produce/acquire products. Does not include operating expenses like rent, marketing, or salaries.
Example: $100,000 revenue - $60,000 COGS = $40,000 gross profit (40% gross margin)
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I
Interest Rate Finance
The percentage charged for borrowing money, typically expressed annually. Does NOT include fees—see APR for the true cost. Lower rates mean lower borrowing costs.
• Fixed rate: Stays the same for the loan term
• Variable rate: Can change based on market conditions
• Prime rate: The rate banks charge their best customers
L
LTV (Loan-to-Value Ratio) Finance
The ratio of your loan amount to the property's value. Higher LTV = higher risk for lenders. LTV over 80% typically requires Private Mortgage Insurance (PMI).
• $300,000 home with $60,000 down payment
• Loan amount: $240,000
• LTV: 240,000 ÷ 300,000 = 80%
• At exactly 80%, you can avoid PMI
M
Macronutrients Health
The three main nutrients your body needs in large amounts: protein, carbohydrates, and fat. Each provides calories and serves different functions in the body.
• Protein: 4 calories/gram (builds muscle)
• Carbs: 4 calories/gram (primary energy)
• Fat: 9 calories/gram (hormone function, satiety)
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Get personalized macro recommendations.
Markup Business
The amount added to the cost of a product to determine its selling price. Calculated as a percentage of the COST (not the selling price—that's margin).
Example: Product costs $60, sells for $100
Markup = (100 - 60) ÷ 60 × 100 = 66.7%
Calculate Markup
Find the right selling price for your products.
N
Net Profit Business
The bottom line—what's left after ALL expenses are paid, including COGS, operating expenses, taxes, and interest. This is your true profitability.
Example:
Revenue: $100,000
- COGS: $40,000
- Operating: $30,000
- Taxes: $6,000
= Net Profit: $24,000 (24% net margin)
P
PMI (Private Mortgage Insurance) Finance
Insurance that protects the LENDER (not you) if you default on your mortgage. Required when your down payment is less than 20%. Typically costs 0.5-1% of the loan annually.
Principal Finance
The original amount of money borrowed, excluding interest. In a mortgage, it's the loan amount. Each payment reduces the principal, building your equity in the property.
R
ROI (Return on Investment) Business
A measure of the profitability of an investment relative to its cost. Expressed as a percentage, it helps compare different investment opportunities.
Example: Invest $10,000, get back $15,000
ROI = (15,000 - 10,000) ÷ 10,000 × 100 = 50%
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Measure your investment returns.
T
TDEE (Total Daily Energy Expenditure) Health
The total number of calories you burn in a day, including BMR plus all physical activity. This is your maintenance calorie level—eat less to lose weight, more to gain.
• Sedentary: BMR × 1.2
• Light activity: BMR × 1.375
• Moderate: BMR × 1.55
• Very active: BMR × 1.725
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Calculate your daily calorie needs.
V
VAT (Value Added Tax) Business
A consumption tax added at each stage of production/distribution. Similar to sales tax but collected differently. Common in Europe (typically 15-25%) and many other countries.
Calculate VAT
Add or remove VAT from prices.