Face value, and actual value

Worked examples

98 decisions, each with the answer the calculator gives for it, how that answer was reached, and a way to put in your own numbers. The figures are illustrative.

Is it worth it?

The price and the add-ons

Is the cheap flight really cheaper?It says $89 each. It really costs $313 each.
A cheap flight with only a small bagIt says $89 each. It really costs $107 each.
A hotel room with a resort feeIt says $129 a night. It really costs $226 a night.
A rental car with the extrasIt says $32 a day. It really costs $87 a day.

Days out

Is the trip to the amusement park worth it?The ticket says $89 each. It really costs $152 each.
Is the concert price worth it?The ticket says $95 each. It really costs $148 each.
A game or a matchThe ticket says $48 each. It really costs $82.33 each.

Protection

Extended warrantyYou could cover this yourself, and on average it costs you $59 more than it returns.
Phone protection planYou could cover this yourself, and on average it costs you $115 more than it returns.
Appliance service planYou could cover this yourself, and on average it costs you $110 more than it returns.
Trip cancellation coverOn average it pays back more than it costs.
Rental car damage waiverIt costs $65 more than it returns on average. What you are buying is not having to face a $3,000 bill.
Home insuranceIt costs $300 more than it returns on average. What you are buying is not having to face a $150,000 bill.

Bets

Lottery ticketExpect to lose $1.34 of the $2.
Slot machineExpect to lose $48 of the $600.
Raffle ticketExpect to lose $16 of the $20.
Scratch cardExpect to lose $2 of the $5.

Subscriptions

Gym membershipIt costs you $13.33 a use. Paying each time would be $15.00.
Streaming serviceIt costs you $7.75 a use. Paying each time would be $5.00.
Warehouse clubIt costs you $2.71 a use. Paying each time would be $8.00.
Audiobook planIt costs you $15.00 a use. Paying each time would be $25.00.

Buying something

Fix it or buy new?Fixing the washing machine costs $157 a year. A new one costs $90 a year.
Buy new or used?A used car costs $2,742 a year. A new one costs $2,750 a year.
Is this TV worth it?The 55-inch TV costs you $8.61 a month. You said having it is worth $15.00.
Is this purchase worth it?The road bike costs you $10.00 a month. You said having it is worth $20.00.
A toolIt costs you $4.00 a use. The other way is $25.00.
Pressure washerIt costs you $15.63 a use. The other way is $60.00.
Espresso machineIt costs you $0.33 a use. The other way is $3.00.
Formal wearIt costs you $133.33 a use. The other way is $150.00.

Borrowing

Borrow or pay cash?Borrowing costs you $2,061 more than paying cash.
A 0% financing dealBorrowing leaves you $55.76 ahead of paying cash.
Pawning an itemThat is 243% a year.
Payday loanThat is 391% a year.
Credit card cash advanceThat is 85% a year.
Pay in 4You pay back exactly what you got.

Investing in something

A degreeIt has paid for itself by year 28.
Trade certificateIt has paid for itself by year 1.
Bootcamp or courseIt has paid for itself by year 5.
Solar panelsIt has paid for itself by year 13.

The cost of saving

Saving money

Do it yourself, not hire someoneYou come out $410 ahead.
A cheaper used carYou come out $1,650 ahead.
Cook at home, not eat outYou come out $60 ahead.
Go out of your way for a lower priceIt costs you $6.50 more than it saves.

People

Reduce headcountOn these figures the costs come to $965,867 more than the saving.
Cut trainingOn these figures the costs come to $88,452 more than the saving.
Freeze hiringThe saving holds by $186,038, with 61.2% of it taken up by costs.
Replace experienced staff with cheaper hiresOn these figures the costs come to $709,990 more than the saving.
Outsource a teamOn these figures the costs come to $161,302 more than the saving.
Skip pay rises this yearOn these figures the costs come to $178,688 more than the saving.

Suppliers and materials

Switch to a cheaper supplierThe saving holds by $42,120, with 76.6% of it taken up by costs.
Use cheaper materialsThe saving holds by $43,500, with 83.9% of it taken up by costs.

Operations

Skip maintenanceOn these figures the costs come to $22,500 more than the saving.
Delay replacing equipmentThe saving holds by $102,000, with 57.5% of it taken up by costs.
Cut quality checksOn these figures the costs come to $33,975 more than the saving.
Cut customer supportThe saving holds by $101,800, with 69.2% of it taken up by costs.
Hold less stockThe saving holds: $64,433 ahead after every cost is counted.

Sales and marketing

Cut marketingThe saving holds by $71,250, with 76.3% of it taken up by costs.
Cut the sales teamOn these figures the costs come to $836,985 more than the saving.
Close a locationOn these figures the costs come to $79,000 more than the saving.

Overheads

Cancel an unused subscriptionThe saving holds: $15,033 ahead after every cost is counted.
Cut research and developmentOn these figures the costs come to $238,600 more than the saving.
Cut the IT and security budgetThe saving holds by $60,000, with 75% of it taken up by costs.

Pricing

Raise pricesThe gain holds by $212,154, with 64.6% of it taken up by costs.
Discount to win more salesThe gain holds by $114,000, with 68.3% of it taken up by costs.

Growth

Take on a big new customerOn these figures the costs come to $136,600 more than the gain.
Launch a second productThe gain holds by $175,212, with 76.6% of it taken up by costs.
Open a second locationThe gain holds by $555,325, with 53.7% of it taken up by costs.

Capacity

Sell idle machine timeThe gain holds: $219,833 ahead after every cost is counted.
Add a second shiftThe gain holds: $625,450 ahead after every cost is counted.

Where the work happens

On-site, hybrid or home: a team that learns side by sideOn-site comes to $240,000 a year, $44,385 less than hybrid.
On-site, hybrid or home: a team that needs bothHybrid comes to $204,000 a year, $116,923 less than work from home.
On-site, hybrid or home: a team that works well apartWork from home comes to $244,308 a year, $73,846 less than hybrid.

What am I making?

Work

Is this job worth it?On paper it pays $20.00 an hour. Really it pays $13.54.
A better-paid job farther awayOn paper it pays $25.00 an hour. Really it pays $14.23.
A second job or side gigOn paper it pays $18.33 an hour. Really it pays $11.67.

The cost of waiting

Putting it off

Put off a car repairPutting it off for 6 months costs you $532.
Wait to pay off a credit cardPutting it off for 12 months costs you $397.
Put off the dentistPutting it off for 12 months costs you $305.
Put off a home repairPutting it off for 6 months costs you $2,148.
Wait to replace something that still worksPutting it off for 12 months leaves you $43 ahead.

The cost of barriers

Hiring: how many steps, and which ones

How many interview rounds?Stopping after round 3 would leave you $3,298 better off.
Should the role require a degree?It costs $44,100 a month and gets back $10,800: $33,300 a month worse off.
How many years of experience to ask for?It costs $27,563 a month and gets back $5,625: $21,938 a month worse off.
How long should the application be?With no steps at all you would be $71,970 a month better off.
A take-home assignmentIt costs $11,400 a month and gets back $3,808: $7,592 a month worse off.
A general aptitude testIt costs $20,520 a month and gets back $4,998: $15,522 a month worse off.
A work-sample testIt costs $8,040 a month and gets back $9,282.
A licence or certificate checkIt costs $3,490 a month and gets back $76,000.

Customers: sign-up, checkout and fees

A sign-up formStopping after step 2 would leave you $1,268 a month better off.
An account required before buyingIt costs $26,730 a month and gets back $2,250: $24,480 a month worse off.
Checks at a checkoutIt costs $9,716 a month and gets back $21,000.
A minimum orderIt costs $2,160 a month and gets back $2,700.
A membership feeIt costs $40,000 a month and gets back $12,000: $28,000 a month worse off.
A convenience fee at checkoutIt costs $5,940 a month and gets back $8,190.
A paywallIt costs $4,800 a month and gets back $6,400.
Compliance checks for new customersStopping after step 2 would leave you $7,629 a month better off.
A deposit or credit checkIt costs $7,400 a month and gets back $14,000.

Inside the business: approvals

Sign-offs on a requestStopping after step 2 would leave you $3,676 a month better off.