Altman Z-Score
Calculate Altman Z-Score instantly with the exact formula and a worked example.
Altman Z-Score
WC/TA
RE/TA
EBIT/TA
MV/Debt
Sales/TA
Z-score
2.89
Z
2,89
Zone
Grey
More about: Altman Z-Score
What it calculates
The “Altman Z-Score” calculator computes Z-score from 5 parameters: wc/ta, re/ta, ebit/ta, mv/debt, sales/ta.
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters WC/TA = 0.2, RE/TA = 0.3, EBIT/TA = 0.1, MV/Debt = 1.5, Sales/TA = 1 the result is 2.89 (1.2X₁+1.4X₂+3.3X₃+0.6X₄+1.0X₅).
How to use
- Enter wc/ta, re/ta, ebit/ta, mv/debt and sales/ta — each field above is adjustable with a slider.
- Z-score is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.
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