---
title: "Securities Industry Essentials (SIE) Exam Formulas, Explained Simply"
url: https://siecheatsheet.com/sie-formulas
description: "The five formulas the Securities Industry Essentials (SIE) exam actually uses, explained in plain English with worked examples: current yield, bond price, price-to-earnings (P/E), margin and mutual fund sales charges."
updated: 2026-10-19
site: "siecheatsheet.com: a one-page Securities Industry Essentials (SIE) exam study guide by Jason Meinzer, who passed after 150+ hours and 12+ practice exams. $4.99 PDF, 7-day refund. Free SIE exam facts, formulas, pass rates and prep comparisons."
---
Do not schedule your Securities Industry Essentials (SIE) exam until you know everything on [my study guide](https://siecheatsheet.com/cheat-sheet). I failed 10 practice exams before I knew 100% of it.

# The Securities Industry Essentials exam formulas, in plain English

The five that actually show up, each with a worked example.

[Get the study guide — $4.99](https://siecheatsheet.com/go/buy?src=formulas-agent)[See what's on it](https://siecheatsheet.com/cheat-sheet)

-   7-day money-back guarantee
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-   Updated Oct 8, 2026

I'm [Jason Meinzer](https://siecheatsheet.com/about), a real person. I studied 150+ hours, took 12+ practice exams (900 questions), and passed the SIE. I made this study guide by hand. It is not AI slop.

**SIE Study Guide**Jason Meinzer, one page

**Reports**

**Rights**

**Voting**

**Systematic risk**

**Reinvestment risk**

**Bond yield**

**Bond price**

**Bond ratings**

**Settlement**

**Market caps**

**Dividends (DERP)**

**Margin**

Made by handNot AI slop About 100 conceptsEach one explained

## The 3 steps

Do them in this order. Step 2 is the gate.

1.  1

    ### Study 100+ hours with a prep course.

    No shortcut. Any of [these](https://siecheatsheet.com/best-sie-prep) works if you finish it. I used Achievable.

2.  2

    ### The gate: get the sheet.

    Can't explain every item on it? Don't schedule the exam.

    ↩ Back to step 1
3.  3

    ### Only then book the exam.

    Fail once or twice, you lose the $100 booking fee each time and wait a month to retake it. Fail 3 times, you wait 180 days.


## 1\. Current yield

**Current yield = yearly interest ÷ what the bond costs today.**

A bond pays 6% on $1,000 face, so $60 a year. It's trading at $1,200. $60 ÷ $1,200 = **5%**.

The big idea: when a bond's price goes up, its yield goes down. They always move in opposite directions.

## 2\. Bond price from a quote

**Quotes are a percent of $1,000 face value.**

A quote of 97¾ means 97.75% × $1,000 = **$977.50**. Each full point is $10.

[Get the study guide — $4.99](https://siecheatsheet.com/go/buy?src=formulas-agent)

## 3\. Price-to-earnings (P/E)

**P/E = share price ÷ earnings per share.**

Stock at $45, earning $3 a share. $45 ÷ $3 = **15**. Investors pay $15 for every $1 of yearly profit.

## 4\. Margin (Reg T)

**To buy on margin, you put up 50% of the purchase.**

Buy $20,000 of stock: you deposit **$10,000** and borrow the rest from the firm. The firm then wants you to keep at least 25% equity in a long account.

## 5\. Mutual fund sales charge

**Sales charge % = (offer price − net asset value (NAV)) ÷ offer price.**

Offer price $20, NAV $19. $1 ÷ $20 = **5%**. The charge is figured on the offer price, not the NAV. That trips people up.

**Want every formula and rule on one page?** That's what my study guide is. It's what I reviewed right before I passed.

## Questions people ask

Is there a lot of math on the SIE?

Not much. A handful of questions need simple arithmetic. No calculator tricks, just knowing which numbers go where.

Do I get a calculator?

Yes. The test center provides one on screen.

Which formula shows up most?

In my experience, bond yields and prices. Know which way price moves when rates change.

[Get the study guide — $4.99](https://siecheatsheet.com/go/buy?src=formulas-agent)

---
Source: https://siecheatsheet.com/sie-formulas (siecheatsheet.com, by Jason Meinzer). Exam facts are checked against FINRA and dated on the page. The study guide is $4.99 with a 7-day refund.