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# What is a Financial Calculator?

Article Details
• Written By: Ken Black
• Edited By: Bronwyn Harris
2003-2018
Conjecture Corporation
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A financial calculator is a device used to calculate not only basic mathematics, but financial matters as well. While all calculators can do the basic functions, this device makes it easier for the user in that there is no need to plug in financial formulas. The information is already pre-loaded into the calculator.

Many people use a financial calculator to determine how much payments would be on a loan or how it may be affected, depending on the repayment terms. This is very important information for many people who are considering mortgages or car loans. Having this type of calculator handy could help provide some legitimacy to what the mortgage company or car dealer is saying.

Generally, many people may not get enough use from added functions of this calculator to truly see how it may be worthwhile. One will cost considerably less than a higher-scale graphing calculator, however, and feature-rich models can be found relatively inexpensively. So for those who are already in the market for a good calculator, choosing this type may not be that much more of an investment.

A financial calculator is a valuable tool for those who are in the finance industry. Mortgage loan officers and others involved in approving or beginning loans will find they use them multiple times daily during the course of their jobs. For these individuals, they are usually not just a luxury, but a necessity.

While it may be possible to do all the functions of a financial calculator without one, it can save a great deal of time. In higher mathematics, the time-consuming portion is not figuring the addition, subtraction, multiplication, and division, but plugging in the right numbers in the right portions of the formula. The calculator takes all the guesswork out of the equation and does this automatically.

In many cases, one of these devices will be able to perform 100 or more financial functions. Though many may that they only use of a handful of these regularly, and many others may never be truly understood, they all have a place in the financial world. In addition to determining loan payments, among the most popular features are determining principle and interest, percentages, standard deviation, and cash flows.