Worked examples / Capacity

Sell idle machine time

The machine sits unused most evenings. Nearly all of what this takes was spare, so the gain holds up.

The gain holds

The gain holds: $219,833 ahead after every cost is counted.

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

What it costs$20,167counted over the same years

On paper it is worth $240,000 over 3 years.
What it costs comes to $20,167: every $1 of gain costs $0.08.

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	$5,000
Earnings lost because of it	$5,667
Side costs	$9,000
Cost of having to undo it, by its chance	$500
What it costs in all	$20,167
Cost per $1 of gain	$20,167 / $240,000 = $0.08
Result at the end	$219,833

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

Open the calculator

How this answer was worked out

What the calculator asks you

Related