Macaulay Duration Calculator

✖Cash Flow Number refers to the serial wise number of cash flow which is to be used while adding.ⓘ Cash Flow Number [cfn]			+10% -10%
✖Cash Flow, in general, refers to payments made into or out of a business, project, or financial product.ⓘ Cash Flow [CF]			+10% -10%
✖Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.ⓘ Yield to Maturity (YTM) [YTM]			+10% -10%
✖Compounding Periods is the number of times compounding will occur during a period.ⓘ Compounding Periods [n]			+10% -10%
✖Time in Years refers to a duration or period measured in terms of the number of years elapsed or anticipated.ⓘ Time in Years [T_yrs]			+10% -10%
✖The present value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value [PV]			+10% -10%

✖Macaulay Duration is the weighted average time until cash flows are received.ⓘ Macaulay Duration [Macaulay_dur]

⎘ Copy

👎

Formula

✖

Macaulay Duration

Formula

`"Macaulay"_{"dur"} = sum(x,1,5,"cfn",(("CF"/(1+"YTM"/"n"))^"cfn"))*("T"_{"yrs"}/"PV")`

Example

`"2"=sum(x,1,5,"5",(("1050"/(1+"12"/"10"))^"5"))*("4"/"10")`

Calculator

LaTeX

Reset

👍

Macaulay Duration Solution

STEP 0: Pre-Calculation Summary

Formula Used

Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value)
Macaulay_dur = sum(x,1,5,cfn,((CF/(1+YTM/n))^cfn))*(T_yrs/PV)
This formula uses 1 Functions, 7 Variables

Functions Used

sum - Summation or sigma (∑) notation is a method used to write out a long sum in a concise way., sum(i, from, to, expr)

Variables Used

Macaulay Duration - Macaulay Duration is the weighted average time until cash flows are received.
Cash Flow Number - Cash Flow Number refers to the serial wise number of cash flow which is to be used while adding.
Cash Flow - Cash Flow, in general, refers to payments made into or out of a business, project, or financial product.
Yield to Maturity (YTM) - Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.
Compounding Periods - Compounding Periods is the number of times compounding will occur during a period.
Time in Years - Time in Years refers to a duration or period measured in terms of the number of years elapsed or anticipated.
Present Value - The present value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

STEP 1: Convert Input(s) to Base Unit

Cash Flow Number: 5 --> No Conversion Required
Cash Flow: 1050 --> No Conversion Required
Yield to Maturity (YTM): 12 --> No Conversion Required
Compounding Periods: 10 --> No Conversion Required
Time in Years: 4 --> No Conversion Required
Present Value: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

Macaulay_dur = sum(x,1,5,cfn,((CF/(1+YTM/n))^cfn))*(T_yrs/PV) --> sum(x,1,5,5,((1050/(1+12/10))^5))*(4/10)

Evaluating ... ...

Macaulay_dur = 2

STEP 3: Convert Result to Output's Unit

2 --> No Conversion Required

FINAL ANSWER

2 <-- Macaulay Duration

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Business » Macaulay Duration

Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 22 Business Calculators

Macaulay Duration

Go Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value)

Weighted Average Cost of Capital

Go Weighted average cost of capital = ((Market value of the firm’s equity/Firm Value)*Cost of Equity)+(((Market Value of the Firm’s Debt/Firm Value)*Cost of Debt)*(1-Corporate Tax Rate))

Total Inventory Cost

Go Total Inventory Cost = Carrying cost per unit per year*(Quantity of Each Order/2)+Fixed cost per order*(Demand in units per year/Quantity of Each Order)

Acid Test Ratio

Go Acid Test Ratio = (Cash+Accounts Receivable+Short Term Investments)/Current Liabilities

Economic Order Quantity

Go Economic Order Quantity = ((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2)

Return on Capital Employed

Go Return on capital employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100

Diluted Earnings per Share

Go Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities)

Inventory Shrinkage

Go Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100

Modified Duration

Go Modified Duration = Macaulay Duration/(1+Yield to Maturity (YTM)/Coupon Periods)

Target Inventory Investment

Go Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover

Retention Ratio

Go Retention Ratio = (Net Income-Dividend)/Net Income

Contribution Margin per Unit

Go Contribution Margin per Unit = Sales Price per Unit-Variable Cost per Unit

Operating Expense Ratio

Go Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100

Break-Even Point

Go Break Even Point = Fixed Costs/Contribution Margin per Unit

Estimated Earnings

Go Estimated Earnings = Forecasted Sales-Forecasted Expense

Debt Coverage Ratio

Go Debt Coverage Ratio = Net Operating Income/Debt Service

Dividends Per Share

Go Dividends Per Share = Total Dividends/Number of Shares

Solvency Ratio

Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Estimate at completion

Go Estimate at Completion = Actual Cost+Bottom up ETC

Percentage off

Go Percentage Off = 1-(Selling Price/Original Price)

Preferred Stock

Go Preferred Stock = Dividend/Discount Percentage

Days in Inventory

Go Days in Inventory = 365/Inventory Turnover

Macaulay Duration Formula

What is Macaulay Duration?

Macaulay duration finds the present value of a bond’s future coupon payments and maturity value. Fortunately for investors, this measure is a standard data point in most bond searching and analysis software tools. Because Macaulay duration is a partial function of the time to maturity, the greater the duration, the greater the interest rate risk or reward for bond prices.

How to Calculate Macaulay Duration?

Macaulay Duration calculator uses Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value) to calculate the Macaulay Duration, The Macaulay Duration formula helps to find the present value of a bond’s future coupon payments and maturity value. Macaulay Duration is denoted by Macaulay_dur symbol.

How to calculate Macaulay Duration using this online calculator? To use this online calculator for Macaulay Duration, enter Cash Flow Number (cfn), Cash Flow (CF), Yield to Maturity (YTM) (YTM), Compounding Periods (n), Time in Years (T_yrs) & Present Value (PV) and hit the calculate button. Here is how the Macaulay Duration calculation can be explained with given input values -> 2 = sum(x,1,5,5,((1050/(1+12/10))^5))*(4/10).

FAQ

What is Macaulay Duration?

The Macaulay Duration formula helps to find the present value of a bond’s future coupon payments and maturity value and is represented as Macaulay_dur = sum(x,1,5,cfn,((CF/(1+YTM/n))^cfn))*(T_yrs/PV) or Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value). Cash Flow Number refers to the serial wise number of cash flow which is to be used while adding, Cash Flow, in general, refers to payments made into or out of a business, project, or financial product, Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime, Compounding Periods is the number of times compounding will occur during a period, Time in Years refers to a duration or period measured in terms of the number of years elapsed or anticipated & The present value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

How to calculate Macaulay Duration?

The Macaulay Duration formula helps to find the present value of a bond’s future coupon payments and maturity value is calculated using Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value). To calculate Macaulay Duration, you need Cash Flow Number (cfn), Cash Flow (CF), Yield to Maturity (YTM) (YTM), Compounding Periods (n), Time in Years (T_yrs) & Present Value (PV). With our tool, you need to enter the respective value for Cash Flow Number, Cash Flow, Yield to Maturity (YTM), Compounding Periods, Time in Years & Present Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search