Free · Equity investment calculators 📈
Earnings After Equity Charge Calculator
Subtract a modeled equity capital charge from net income.
- Formula & worked example
- Private in your browser
- No signup
Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Edit a calculated value to solve backwards, or lock a value to hold it fixed.
- Use the worked example to check the method. Reset restores the starting fields.
Use the result with context
Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.
Formula and method
Equity capital of 100,000 at a required 10% return produces an equity charge of 10,000. Net income of 15,000 then leaves residual income of 5,000.
Equity charge = equity capital × cost of equity; residual income = net income − equity charge
Worked example
Enter these known values and leave the other values blank.
- Equity capital
- 100000 USD
- Cost of equity
- 10 %
- Net income
- 15000 USD
- Equity charge
- 10000 USD
- Residual income
- 5000 USD
Assumptions and limitations
- This calculator uses the corporate equity-charge definition. It does not calculate a household’s cash left after monthly expenses. Match the cost-of-equity period to the net-income period.
- Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.
Common questions
Is this income left after household bills?
This calculator uses the corporate equity-charge definition. It does not calculate a household’s cash left after monthly expenses. Match the cost-of-equity period to the net-income period.
References
The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.
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