CPA Exam (Core Sections) Formulas & Calculators
Plug in your numbers and see every result worked out, step by step — then use the reference below to recognise which formula a question is really asking for.
← Back to the full “How to pass CPA Exam (Core Sections)” guideStudy aid only, not financial advice
These calculators practice the standard exam formulas so you can check your working. They are for exam preparation only. Real financial decisions involve taxes, fees, inflation, and risk that these formulas do not model.
Future value (savings growth)
Grow a starting amount plus regular contributions at a periodic rate.
Future value
PV(1+r)^N + PMT annuity
…growth on the starting amount
PV(1+r)^N
…value of the contributions
Present value (discounting)
What a future sum (and/or recurring cash flow) is worth today.
Present value
FV ÷ (1+r)^N + PMT annuity
Effective annual rate (EAR)
The true annual rate once compounding is included.
Effective annual rate
(1 + i/m)^m − 1
Compound annual growth rate (CAGR)
The smoothed annual growth rate between two values.
CAGR
(End ÷ Begin)^(1/years) − 1
Formula reference
What each formula means and when to reach for it on exam day.
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Current ratio
current ratio = current assets ÷ current liabilities
Short-term liquidity — ability to cover near-term obligations.
When: Liquidity analysis in FAR/BAR ratio questions.
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Quick (acid-test) ratio
quick = (current assets − inventory) ÷ current liabilities
Liquidity excluding the least-liquid current asset.
When: When inventory is slow-moving or must be excluded.
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Debt-to-equity
D/E = total liabilities ÷ total equity
Leverage — reliance on debt versus owner financing.
When: Solvency and capital-structure analysis.
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Return on equity
ROE = net income ÷ average equity
Profit generated per dollar of shareholder equity.
When: Profitability and DuPont decomposition.
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Gross margin
gross margin = (net sales − COGS) ÷ net sales
Share of revenue left after the cost of goods sold.
When: Profitability and cost-structure questions.
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Present value (lump sum)
PV = FV ÷ (1 + r)^N
Discounting future amounts to today’s dollars.
When: Lease liabilities, bond pricing, and impairment in FAR.
Frequently asked questions
- Is a calculator provided on the CPA Exam?
- Yes. The exam includes an on-screen calculator, and many task-based simulations provide a spreadsheet, so you can compute ratios and present values without bringing your own device.
- What formulas should I know for the CPA Exam?
- Liquidity and solvency ratios (current, quick, debt-to-equity), profitability ratios (ROE, gross margin), and present-value / time-value-of-money math for leases, bonds, and impairment — concentrated in the FAR and BAR material.