Worked examples / Overheads

Cut the IT and security budget

Nothing happens until something does. Here the chance of having to undo it stands for an outage or a breach.

The saving holds, narrowly

The saving holds by $60,000, with 75% of it taken up by costs.

The saving, on paper$240,000over 3 years

What it costs$180,000counted over the same years

On paper it is worth $240,000 over 3 years.
What it costs comes to $180,000: every $1 of saving costs $0.75.

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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

One-time cost	$0
Earnings lost because of it	$50,000
Side costs	$30,000
Cost of having to undo it, by its chance	$100,000
What it costs in all	$180,000
Cost per $1 of saving	$180,000 / $240,000 = $0.75
Result at the end	$60,000

Every formula is written out on the formulas page.

What the calculator asks you

The expected saving each year
The one-time cost of making the change
What the thing being changed was earning
How much of it is affected, and how much of that was truly spare
Which parts of the business rely on it
The chance of having to undo it

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How this answer was worked out

What the calculator asks you

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