Get Active in Our Amazing Community of Over 454,000 Peers!

Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!

Common math formulas

math quantitative
New answer on Apr 30, 2024
5 Answers
1.6 k Views
Anonymous A asked on May 10, 2021

Hi! Do you have a list of common math formulas used in case interviews? I had a case recently where fair value was asked and I was just o_O. Hope you can help a mathematically-impaired person out!

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Ian
Expert
Content Creator
replied on May 10, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Was this answer helpful?
Antonello
Expert
Content Creator
replied on May 10, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching
Was this answer helpful?
Francesco
Expert
Content Creator
updated an answer on May 11, 2021
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi there,

The most common formulas you need to know in a consulting interview are:

  • Breakeven
  • Rule of 72
  • Perpetuity formula and general NPV formula
  • ROI and related financial ratios

Besides that, you should be familiar with simple and compound interests.

Best,

Francesco

(edited)

Was this answer helpful?
Clara
Expert
Content Creator
updated an answer on Jul 27, 2023
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Precisely for the high amount of questions (1) asked by my coachees and students and (2) present in this Q&A, I created the “Economic and Financial concepts for MBB interviews”, recently published in PrepLounge’s shop (https://www.preplounge.com/en/shop/prep-guide/economic_and_financial_concepts_for_mbb_interviews).

After +5 years of candidate coaching and university teaching, and after having seen hundreds of cases, I realized that the economic-related knowledge needed to master case interviews is not much, and not complex. However, you need to know where to focus! Hence, I created the guide that I wish I could have had, summarizing the most important economic and financial concepts needed to solve consulting cases, combining key concepts theorical reviews and a hands-on methodology with examples and ad-hoc practice cases.

It focuses on 4 core topics, divided in chapters (each of them ranked in scale of importance, to help you maximize your time in short preparations):

  • Economic concepts: Profitability equation, Break even, Valuation methods (economic, market and asset), Payback period, NPV and IRR, + 3 practice cases to put it all together in a practical way. 
  • Financial concepts: Balance sheet, Income statement/P&L and Performance ratios (based on sales and based on investment), +1 practice case
  • Market structure & pricing: Market types, Perfect competition markets (demand and supply), Willingness to pay, Pricing approaches, Market segmentation and Price elasticity of demand, +1 practice case
  • Marketing and Customer Acquisition: Sales funnel, Key marketing metrics (CAC and CLV) and Churn, +1 practice case

Feel free to PM me for disccount codes for the guide, and I hope it helps you rock your interviews! 

(edited)

Was this answer helpful?
Cristian
Expert
Content Creator
replied on Apr 30, 2024
#1 rated MBB & McKinsey Coach
Was this answer helpful?
Ian gave the best answer

Ian

Content Creator
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
1,101
Meetings
78,392
Q&A Upvotes
237
Awards
5.0
151 Reviews
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
You are a true consultant! Thank you for consulting us on how to make PrepLounge even better!