Worked examples / Growth

Open a second location

New sales in a new place. It pulls managers and some customers away from the first.

The gain holds, narrowly

The gain holds by $555,325, with 53.7% of it taken up by costs.

The gain, on paper$1,200,000over 3 years

What it costs$644,675counted over the same years

On paper it is worth $1,200,000 over 3 years.
What it costs comes to $644,675: every $1 of gain costs $0.54.

Put in your own numbers

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	$250,000
Earnings lost because of it	$254,675
Side costs	$90,000
Cost of having to undo it, by its chance	$50,000
What it costs in all	$644,675
Cost per $1 of gain	$644,675 / $1,200,000 = $0.54
Result at the end	$555,325

Every formula is written out on the formulas page.

What the calculator asks you

The expected gain 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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