Worked examples / Saving money
A car that costs $6,000 less, kept three years: about $2,500 more in repairs and $900 more in fuel, 20 hours lost to the repair shop, and a 15% chance of a $3,000 failure.
You come out $1,650 ahead.
This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.
How this answer was worked out| You save | $6,000 |
| Extras | $3,400 |
| Your time | 20 hours x $25.00 = $500 |
| Risk, on average | 15% x $3,000 = $450 |
| Total cost | $4,350 |
| Net | $6,000 - $4,350 = $1,650 |
| Cost per $1 saved | $0.72 |
| Break-even value of an hour | $107.50 |
| Break-even chance of it going wrong | 70% |
Every formula is written out on the formulas page.
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