Business Mathematics for Management Courses and Studies

Understanding economics or running a business requires math skills. By using math to figure out things like the company's total revenue, we gain a better understanding of quantity relationships. Understanding this will also help in making more informed business decisions. Although the use of simple math is beneficial, complicated math is just as beneficial for businesses to use. Business math introductory courses help in laying groundwork for using mathematics in business. Basic relationships between quantities are learned, as well data interpretation, which will help in making business decisions.

Basic Business Math Skills

Sometimes math can be complicated, but basic math skills are necessary, not only for everyday living, but for business as well. These skills include addition, subtraction, multiplication, division, measuring distance and length, measuring temperature, calculating weight, volume, and area, and performing various other basic math operations. These are all things learned while attending school but occasionally we need to refresh our memory. The following resources will help in giving you a better understanding of basic business math:

  • What is Business Math (PDF)– This provides a long answer explaining exactly what business math is.

  • Business Math for Dummies (PDF) – This book provides information on financial computations which use both simple and more complex formulas. You'll also find geometric patterns and structures as well as uses of percents, fractions, and decimals.

  • Business Math – This website consists of Excel and PowerPoint files created for a Math with Business Applications course. The topics can generally be found in the majority of business math courses.

  • Intermediate Algebra – This website has sample problems in real number operations, absolute value, factoring, and more.

  • Math Nerds – This is a math help site which is free to use.


There is a close connection between mathematics and banking. An extensive use of math is required to keep track of money, and being precise is essential since banks handle a substantial amount of money on a daily basis. Should there be any inaccuracies in the math used, there can be negative ramifications. Every person working in the bank from executives to tellers needs to have a good grasp on math skills in order to perform their job correctly. Having a firm grasp on math will ensure that any money coming in and going out is going to the places it should be going to.

  • Banking in the United States (PDF) – Here you can find more information on checking accounts, writing checks, savings accounts, deposits, debit and credit cards, record-keeping, credit unions, and more.

  • Compound Interest – This page will teach you how compound interest is calculated for bank deposits.

  • Financial Mathematics (PDF) – Learn the formulas used in financial mathematics and how to apply them. You can also test your knowledge by answering the questions provided.

  • Compound Interest Formula (PDF) – This is the formula for figuring compound interest. There are also some practice exercises for you to do.

  • Simple Interest (PDF) – This website talks about simple interest and present value. The simple interest formula is provided along with examples.


There are various taxes in business and different formulas used to figure taxes out. There are formulas for back and front-end ratio, income to price ratio, rent to price ratio, social security tax, state tax, federal withholding tax, sales per square foot, and many more. It seems complicated at first but once you understand how to use the formulas it becomes second nature. The following resources will help you better understand various tax formulas:

  • Federal Withholding Tax – Learn how to calculate federal withholding tax.

  • Business Entities (PDF) – This article will teach you about starting a business as well as maintaining things such as business taxes.

  • Small and Non-Profit Business (PDF) – This is a guide for entrepreneurs, small business, and non-profit business start-ups. It will teach you everything you need to know about getting your business off the ground and how to handle business taxes.

  • Small Business (PDF) – This is a brief tax lesson for small businesses.

  • Start and Grow a Small Business (PDF) – This is a question and answer guide for starting and growing small businesses.

Stocks and Dividends

When a board of directors decides to distribute a share of what a company has earned it's called a dividend. Dividends can come in the form of property, cash, or stock. Usually companies that are the most secure will offer this to stockholders within their company. The prices of the stock may not move very much but dividends are an attempt to compensate for this. The following resources provide more in-depth information about stocks and dividends:

  • Stock Fluctuations – This will give you a better understanding as to why stocks fluctuate in value.

  • The Stock Market – Here you can read about the various types of preferred stock.

  • Dividends – Read and learn about different types of stocks and dividends. This resource also provides a brief overview as well as examples.

  • Stocks (PDF) – This website has a list of word problems which you can use to test your knowledge about valuing stocks.

  • Investing (PDF) – Learn about the various options for stock investing.

Loans and Mortgages

When a person obtains any type of loan, whether it is for school, a mortgage, a vehicle, etc., there is basic business math involved. Various formulas are used in calculating interest and monthly payments. There are standard formulas used which help determine how long it will take to repay the loan as well. The formulas are used in calculating various types of conventional loans including business loans, consumer loans, and mortgage loans and the formula does not differ according to how the loan is spent.

  • Mortgage Amortization (PDF) – This is a word problem which focuses on how to calculate mortgage payments.

  • Math Matters (PDF) – This will help you understand how to calculate monthly payments of an amortized loan as well as how to examine interest over the loan's life, and how adding small additions to payments can lessen the length of time needed for loan repayment.

  • Borrowing (PDF) – This series of problems will help you understand loans by giving examples and showing how to calculate necessary monthly payments.

  • Business Math (PDF) – This resource uses examples to show how probability can be used in making business decisions.

  • Mathematics of Finance – This is a great resource that will teach you about simple interest, compound interest, effective interest rate, and present the value of annuities.