Calculate the Opportunity Costs of Consumables ...

Namely, non-essential goods and services that become worthless in short order.

Annual ROI:Annual ROI:Expected annual return on investments:Expected annual return on investments:
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Expected annual return on investments:

Enter the annual interest rate you expect to earn on your investments. Please enter as a percentage, but without the percent sign (for .06 or 6%, enter 6).

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Hourly wage:Hourly wage:Hourly wage:Hourly wage:

Annual salary:
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Hours/workday:
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Workdays/week:
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Hourly wage:
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Hourly wage:

Enter your current hourly wage (the money value of your time), but without the dollar sign or any commas. If you earn an annual salary you can expand the description in this row to display a calculator that will help you to estimate your hourly wage.

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# of years:Number of years:Years to calculate opportunity costs:Number of years to calculate opportunity costs:
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Number of years to calculate opportunity costs:

Enter the number of years to calculate time value of money for. This could either be an arbitrary number of years or it could be the number of years till a significant date is reached (child reaches college age, your retirement age, etc.).

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Consumable:Consumable name:Name of consumable product or service:Name of consumable product or service:
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Name of consumable product or service:

Enter the name of the consumable good or service you are calculating opportunity costs for. For our purposes, a consumable (expendable) is considered to be a product or service that loses all of its value in a short period of time (1 year or less) and does not come with any ongoing costs of ownership (energy, insurance, storage, maintenance, repairs, etc.).

Purchase frequency:
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Purchase frequency:

Enter the number of times you purchase this consumable per the selected time period. For example, if you purchase the consumable each workday and you work 5 days per week, you would enter a 5 and select week as the time period.

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Buy cost:Purchase cost:Cost per purchase:Cost per purchase:
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Cost per purchase:

Enter the total amount of money you spend each time you purchase the expendable. Be sure to include any other costs that are directly related to the purchase (sales tax, travel expenses, time taken off from work, etc.). Note you can also use this and the above line to calculate the opportunity cost of doing nothing, versus using that time to earn and invest an hourly wage (watching TV versus working a part-time business or job and investing the proceeds).

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Sub cost:Substitute cost:Cost of lower priced substitute:Cost of lower priced substitute:
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Cost of lower priced substitute:

If this consumable is considered to be an essential, and therefore cannot be eliminated from your spending habits, see if you can find a less expensive substitute and enter the price here. The time value of money calculator will calculate the reduced opportunity costs of switching from the higher priced consumable (name brand) to the lower priced substitute (generic or store brand).

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Calculate Opportunity CostCalculate Opportunity CostCalculate Opportunity Cost of ConsumableCalculate Opportunity Cost of Consumable
Opportunity Cost
Tap the text for a description of each row result.
Item CurrentCurrentCurrentCurrent Subs...SubstituteSubstituteSubstitute SavingsSavingsSavingsSavings
Ann cost:Annual cost:Annual cost:Annual cost:
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Annual cost:

Based on your entries, this is how much you are spending on purchasing this consumable on an annual basis, along with the annual cost of the substitute and its savings if a substitute purchase cost was entered.

Tot cost:Total cost:Total cost:Total cost:
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Total cost:

Based on your entries, this is how much you will spend on purchasing this consumable for the number of years you entered, along with the total cost of the substitute and its savings if a substitute purchase cost was entered.

Lost int:Lost int:Lost interest:Lost interest earnings:
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Lost interest earnings:

Based on your entries, this is the interest earnings you will forgo for the entered number of years if you continue to make this purchase instead of investing the purchase costs, along with the lost interest of the substitute and its lost interest savings if a substitute purchase cost was entered.

Opp cost:Fin opp cost:Financial opp cost:Financial opportunity cost:
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Financial opportunity cost:

Based on your entries, this is the minimum financial opportunity cost of choosing to spend money on this expendable instead of investing the money, along with the total opportunity cost of the substitute and its opportunity cost savings if a substitute purchase cost was entered.

Please note that if you have high interest debt that could be reduced or paid off with money saved by eliminating this expendable from your spending (or switching to a lower priced substitute), the financial opportunity cost of continuing to purchase this expendable is actually much greater than the minimum displayed.

Lost hrs:Lost hours:Time opp cost:Time opportunity cost:
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Time opportunity cost:

Based on your entries, this is the total number of hours you could take off from work if you invested the cost of the consumable rather than purchasing it -- after the entered number of years have passed. If there is something you would rather do with the time you spend at work, then the financial opportunity costs would further lead to personal opportunity costs (good times lost).

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