Reference

Every money word, in plain English.

138+ financial terms — APR to yield curve — each with a short definition and a link to the free calculator that uses it. Source-cited to IRS, Fed, and CFPB.

126 terms link to calculators·Updated May 19, 2026·How we cite sources →

Written by Jere SalmistoReviewed by CalcFi EditorialLast verified: 2026-05-13

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4 A B C D E F G H I J K L M N O P Q R S T U V W Y Z

4

401(k)Employer-sponsored retirement plan that lets you contribute pre-tax (Traditional) or post-tax (Roth) dollars, often with a company match.
Full definition →401(k) Contribution Calculator

A

Account ReconciliationThe process of matching your records with the bank's records to ensure accuracy.
Full definition →
Accrued InterestInterest that has been earned or incurred but not yet paid or received.
Full definition →Compound Interest Calculator
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a market index.
Full definition →Mortgage Payment Calculator
Adjusted Gross Income (AGI)Your total income minus specific "above-the-line" adjustments — the starting point for figuring federal income tax.
Full definition →Tax Bracket Calculator
AmortizationThe gradual payoff of a loan through scheduled payments that cover both interest and principal.
Full definition →Mortgage Payment Calculator
Annual Percentage Rate (APR)The yearly cost of borrowing expressed as a percentage, including interest and fees.
Full definition →Loan Comparison Calculator
Annual Percentage Yield (APY)The effective annual return on savings or investments accounting for compound interest.
Full definition →High-Yield Savings Calculator
AnnuityA contract providing historically reliable income for life or a fixed period, issued by insurers.
Full definition →Retirement Savings Calculator
AssetAnything of economic value owned by an individual or organization.
Full definition →Net Worth Calculator
Asset AllocationThe distribution of portfolio investments among stocks, bonds, cash, and other asset classes.
Full definition →Portfolio Rebalancing Calculator
Asset ClassA category of investments sharing similar characteristics and risk profiles.
Full definition →Portfolio Rebalancing Calculator

B

Back-End LoadA sales fee charged when selling shares of a mutual fund.
Full definition →ETF Fee Impact Calculator
Balance SheetA financial statement showing assets, liabilities, and net worth at a specific point in time.
Full definition →Net Worth Calculator
Balloon PaymentA large lump-sum payment due at the end of a loan term.
Full definition →Loan Comparison Calculator
Basis PointOne one-hundredth of a percent (0.01%); used to express small percentage changes.
Full definition →
Bear MarketA market condition where prices fall 20% or more from recent highs.
Full definition →Dollar-Cost Averaging Calculator
BeneficiaryA person designated to receive assets from an account, trust, or insurance policy.
Full definition →Life Insurance Needs Calculator
Beneficiary DesignationThe legal document naming who receives assets from an account upon your death.
Full definition →Life Insurance Needs Calculator
BetaA measure of a stock's volatility relative to the broader market.
Full definition →Portfolio Rebalancing Calculator
BlockchainA distributed digital ledger recording transactions across multiple computers.
Full definition →Crypto DCA Calculator
BondA debt security where the issuer borrows money from investors and pays periodic interest.
Full definition →Bond Yield Calculator
BudgetA financial plan that estimates income and expenses over a period of time.
Full definition →Budget Planner
Bull MarketA market condition with rising prices, typically 20%+ gains from recent lows.
Full definition →Dollar-Cost Averaging Calculator
Bullet BondA bond maturing all at once on a single date with no early repayment.
Full definition →Bond Yield Calculator

C

Callable BondA bond that the issuer can repay before maturity, typically when rates fall.
Full definition →Bond Yield Calculator
Capital AllocationThe process of deciding how to distribute capital among investments or projects.
Full definition →Portfolio Rebalancing Calculator
Capital LossThe loss from selling an asset for less than its purchase price.
Full definition →Capital Gains Tax Calculator
Cash DividendA payment in cash made by a company to shareholders from profits.
Full definition →Dividend Income Calculator
Cash FlowThe net amount of cash moving in and out of a household or business over a period.
Full definition →Budget Planner
CD RateThe interest rate offered on a Certificate of Deposit over its term.
Full definition →CD Ladder Calculator
Certificate of Deposit (CD)A savings account with a fixed term and fixed interest rate, higher than regular savings.
Full definition →CD Ladder Calculator
Closing CostsFees paid at the end of a real estate transaction, typically 2–5% of the loan amount.
Full definition →Closing Cost Calculator
CollateralAn asset pledged as security for a loan; forfeited if the borrower defaults.
Full definition →Loan Comparison Calculator
Consumer Price Index (CPI)A measure of the average change in prices paid by consumers for goods and services.
Full definition →Inflation Impact Calculator
CovenantA contractual promise or restriction binding a borrower or issuer.
Full definition →Loan Comparison Calculator
Credit CardA payment card allowing you to borrow money from a card issuer, repaid monthly.
Full definition →Credit Card Payoff Calculator
Credit ScoreA three-digit number representing your creditworthiness based on your credit history.
Full definition →Credit Score Impact Calculator
Credit UtilizationThe ratio of credit card balances to total credit limits; ideally kept below 30%.
Full definition →Credit Utilization Calculator
CryptocurrencyDigital currency secured by cryptography and typically decentralized on a blockchain network.
Full definition →Crypto DCA Calculator
Currency Exchange RateThe rate at which one currency can be exchanged for another in foreign exchange markets.
Full definition →Currency Converter
Current AssetsAssets expected to be converted to cash within one year.
Full definition →Net Worth Calculator

D

Day TraderAn investor buying and selling securities within the same trading day.
Full definition →
Debt CeilingA legal limit on the total debt the U.S. government can borrow.
Full definition →
Debt ConsolidationCombining multiple debts into a single loan with potentially lower interest rates.
Full definition →Debt Consolidation Calculator
Debt-to-Income Ratio (DTI)The share of your gross monthly income that goes to debt payments. Lenders use it to gauge how much more you can borrow.
Debt-to-Income Ratio Calculator
DeductibleThe amount you pay out-of-pocket before insurance coverage begins.
Full definition →Home Insurance Estimator
DefaultFailure to repay a loan or meet other financial obligations according to terms.
Full definition →Debt Payoff Calculator
DeflationA sustained decrease in the general price level of goods and services.
Full definition →
Depreciation (Accounting)The reduction in an asset's value over time allocated as an expense in accounting.
Full definition →Depreciation Calculator
DerivativeA financial contract whose value is derived from underlying assets.
Full definition →
Direct DepositAutomatic transfer of your paycheck or benefit payments directly to your bank account.
Full definition →
DiversificationSpreading investments across different assets to reduce overall portfolio risk.
Full definition →Portfolio Rebalancing Calculator
DividendA portion of company profits distributed to shareholders, usually quarterly.
Full definition →Dividend Income Calculator
Dividend ReinvestmentAutomatically using dividend payments to purchase additional shares.
Full definition →Dividend Income Calculator
Down PaymentAn upfront cash payment when purchasing a home or vehicle, reducing the loan amount.
Full definition →Down Payment Savings Calculator

E

Effective Tax RateTotal tax paid divided by total income — your true average tax rate, usually well below your marginal bracket.
Full definition →Marginal vs Effective Tax Rate Calculator
Emergency FundSavings set aside for unexpected expenses; typically 3–6 months of living costs.
Full definition →Emergency Fund Calculator
Employee Stock OptionThe right to purchase company stock at a predetermined price within a specified time.
Full definition →Stock Options & RSU Calculator
EquityThe value of ownership in an asset minus any debt owed against it.
Full definition →Home Equity Calculator
EscrowA neutral third party holding funds or assets until transaction conditions are met.
Full definition →Closing Cost Calculator
ESPP (Employee Stock Purchase Plan)A workplace plan that lets you buy company stock at a discount (often 15%) through after-tax payroll deductions.
Full definition →Stock Options & RSU Calculator
Exchange-Traded Fund (ETF)A basket of securities traded on a stock exchange like a single stock.
Full definition →ETF Fee Impact Calculator
Expense RatioThe annual fee charged by a fund, expressed as a percentage of assets.
Full definition →ETF Fee Impact Calculator

F

Federal Funds RateThe interest rate at which banks lend to each other overnight; set by the Federal Reserve.
Full definition →
FICAFederal payroll tax that funds Social Security and Medicare. Employees pay 7.65% of wages; employers match it.
Full definition →Paycheck Calculator
FICO ScoreThe most widely used credit scoring model, ranging from 300 to 850.
Full definition →Credit Score Impact Calculator
Fixed-Income SecurityAn investment paying a fixed interest rate or dividend at regular intervals.
Full definition →Bond Yield Calculator
Fixed-Rate MortgageA mortgage with an interest rate that stays constant throughout the loan term.
Full definition →Mortgage Payment Calculator
ForeclosureA legal process where a lender takes possession of a home after the borrower defaults.
Full definition →Mortgage Payment Calculator
Forex (Foreign Exchange)The global market where currencies are traded against each other.
Full definition →Currency Converter
FSA (Flexible Spending Account)Employer account that lets you set aside pre-tax dollars for medical or dependent-care expenses, with a use-it-or-lose-it rule.
Full definition →Paycheck Calculator

G

Gross IncomeTotal income before taxes, deductions, and other expenses.
Full definition →Take-Home Pay Calculator
Growth StockA stock in a company expected to grow faster than average, typically paying little or no dividends.
Full definition →Portfolio Rebalancing Calculator

H

Health Savings Account (HSA)A tax-advantaged account for medical expenses, available with high-deductible health plans.
Full definition →HSA Calculator
High-Yield Savings AccountA savings account offering significantly higher interest rates than traditional banks.
Full definition →High-Yield Savings Calculator
Home Equity Line of Credit (HELOC)A revolving line of credit secured by your home equity, typically with variable rates.
Full definition →HELOC Calculator

I

Individual Retirement Account (IRA)A personal retirement savings account with tax advantages; types include Traditional and Roth.
Full definition →IRA Contribution Tax Savings Calculator
InflationThe rate at which the general level of prices rises over time, reducing purchasing power.
Full definition →Inflation Impact Calculator
Interest RateThe cost of borrowing money or the return on savings, expressed as a percentage.
Full definition →Interest Rate Calculator
ISO (Incentive Stock Option)A tax-advantaged employee stock option that can qualify for long-term capital gains treatment if holding rules are met.
Full definition →Stock Options & RSU Calculator
Itemized DeductionsSpecific deductible expenses listed on Schedule A, such as mortgage interest and donations.
Full definition →Tax Bracket Calculator

J

Joint AccountA bank or investment account shared by two or more people, each with full access.
Full definition →

K

Keogh PlanA tax-deferred retirement plan for self-employed individuals and unincorporated businesses.
Full definition →Self-Employed Retirement Calculator

L

LeverageUsing borrowed money to increase potential returns, amplifying both gains and losses.
Full definition →Margin Calculator
LiabilityA financial obligation or debt owed to another party.
Full definition →Net Worth Calculator
LiquidityHow quickly and easily an asset can be converted to cash without losing value.
Full definition →Emergency Fund Calculator
Loan-to-Value Ratio (LTV)The ratio of loan amount to asset value; used in mortgage qualification.
Full definition →Loan-to-Value Calculator
Long-Term Capital GainsProfits from selling assets held for more than one year, taxed at lower rates.
Full definition →Capital Gains Tax Calculator

M

Marginal Tax RateThe tax rate applied to your next dollar of income in the progressive tax system.
Full definition →Marginal vs Effective Tax Rate Calculator
Market CapitalizationThe total market value of a company's outstanding shares.
Full definition →
Market IndexA statistical measure of a market segment used as a benchmark for performance.
Full definition →Index vs Active Fund Calculator
MortgageA loan used to purchase real estate, secured by the property itself.
Full definition →Mortgage Payment Calculator
Municipal BondA bond issued by a state or local government to fund public projects.
Full definition →Bond Yield Calculator
Mutual FundA pooled investment vehicle managed by professionals, holding a basket of securities.
Full definition →ETF Fee Impact Calculator

N

Net IncomeTotal income after taxes, deductions, and expenses—your "take-home" amount.
Full definition →Take-Home Pay Calculator
Net WorthTotal assets minus total liabilities; the clearest snapshot of financial health.
Full definition →Net Worth Calculator

O

OASDI (Social Security Tax)The Social Security portion of FICA — 6.2% on wages up to an annual cap, matched by your employer.
Full definition →Paycheck Calculator
Opportunity CostThe value of the next best alternative foregone when making a financial decision.
Full definition →Opportunity Cost Calculator
Origination FeeA fee charged by a lender to process a new loan, typically 0.5–1% of amount.
Full definition →Closing Cost Calculator

P

PortfolioThe collection of all investments held by an individual or institution.
Full definition →Portfolio Rebalancing Calculator
Post-TaxMoney taken from your paycheck after taxes have already been calculated and withheld.
Full definition →Paycheck Calculator
Pre-TaxMoney deducted from your paycheck before income taxes are calculated, lowering your taxable income today.
Full definition →Paycheck Calculator
Price-to-Earnings Ratio (P/E)A valuation metric comparing a stock's price to its earnings per share.
Full definition →Stock Profit Calculator
PrincipalThe original amount of money borrowed or invested, before interest.
Full definition →Extra Mortgage Payment Calculator
Private Mortgage Insurance (PMI)Insurance required when down payment is less than 20%, protecting the lender.
Full definition →PMI Removal Calculator

Q

Qualified DividendA dividend taxed at capital gains rates rather than ordinary income rates.
Full definition →Dividend Income Calculator
Qualified MortgageA home loan that meets CFPB rules limiting risky features, giving lenders legal safe harbor.
Full definition →Mortgage Payment Calculator

R

Rate of ReturnThe gain or loss on an investment over a period, expressed as a percentage.
Full definition →Investment Return Calculator
RebalancingAdjusting portfolio allocations back to target weights by buying or selling assets.
Full definition →Portfolio Rebalancing Calculator
RefinancingReplacing an existing loan with a new one, typically to lower interest rates.
Full definition →Refinance Savings Calculator
Required Minimum Distribution (RMD)The minimum amount you must withdraw from retirement accounts annually after age 73.
Full definition →RMD Calculator
Roth vs Traditional (Retirement Accounts)The choice between tax deduction now (Traditional) or tax-free withdrawals (Roth).
Full definition →Roth vs Traditional IRA Calculator
RSU (Restricted Stock Unit)Company shares granted to an employee that vest over time and are taxed as ordinary income when they vest.
Full definition →Stock Options & RSU Calculator
Rule of 72A shortcut: divide 72 by annual return % to estimate years until money doubles.
Full definition →Compound Interest Calculator
RunwayHow many months a business can keep operating at its current burn rate before cash runs out.
Full definition →Runway Calculator

S

S&P 500A stock market index tracking 500 large U.S. companies; widely used as a benchmark.
Full definition →Dollar-Cost Averaging Calculator
Safe Withdrawal Rate (SWR)The yearly percentage of a retirement portfolio you can withdraw with low risk of running out of money over a 30-year retirement.
Full definition →FIRE Number Calculator
Savings AccountA bank account for storing money with interest, FDIC-insured and easily accessible.
Full definition →High-Yield Savings Calculator
Simple InterestInterest calculated only on the principal, not on accumulated interest.
Full definition →
Social SecurityA U.S. government program providing retirement, disability, and survivor benefits.
Full definition →Social Security Optimizer
Standard DeductionA flat amount reducing taxable income, claimed instead of itemizing deductions.
Full definition →Tax Bracket Calculator
StockA share of ownership in a company, entitling the holder to profits and assets.
Full definition →Stock Profit Calculator

T

Tax BracketA range of income taxed at a specific marginal rate in the progressive tax system.
Full definition →Tax Bracket Calculator
Tax DeductionAn expense that reduces taxable income, lowering the amount of tax owed.
Full definition →Tax Bracket Calculator
Tax-Loss HarvestingSelling losing investments to offset capital gains and reduce tax liability.
Full definition →Tax-Loss Harvesting Calculator
Term Life InsuranceLife insurance providing coverage for a specific period; pays out only if you die.
Full definition →Life Insurance Needs Calculator
Time Value of MoneyThe principle that a dollar today is worth more than a dollar in the future.
Full definition →Present Value Calculator
Traditional IRAA retirement account where contributions may be tax-deductible; withdrawals are taxed.
Full definition →IRA Contribution Tax Savings Calculator
Treasury BondsU.S. government debt securities considered among the safest investments available.
Full definition →Bond Yield Calculator

U

Underwater MortgageWhen the outstanding loan balance exceeds the current market value of the home.
Full definition →Home Equity Calculator

V

Value StockA stock trading below its intrinsic value, often with low P/E and high dividend yield.
Full definition →Portfolio Rebalancing Calculator
VestingThe process by which an employee gains ownership of employer-contributed retirement benefits.
Full definition →401(k) Contribution Calculator
VolatilityThe degree of price variation in an investment over time; higher volatility means higher risk.
Full definition →Portfolio Rebalancing Calculator

W

Whole Life InsurancePermanent life insurance with a death benefit and a cash value component.
Full definition →Life Insurance Needs Calculator

Y

YieldThe income generated by an investment, expressed as a percentage of its cost.
Full definition →Bond Yield Calculator
Yield CurveA chart showing interest rates for bonds of different maturities.
Full definition →

Z

Zero-Based BudgetingA budgeting method where every dollar of income is assigned a purpose.
Full definition →Budget Planner

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Sources

Definitions draw from the Internal Revenue Service (IRS), the Federal Reserve Board (including FRED), the Consumer Financial Protection Bureau (CFPB), the Bureau of Labor Statistics (BLS), and the U.S. Treasury. Edited by CalcFi for clarity. Updated May 19, 2026. Read our methodology and editorial policy.