zachtheoldham
New member
- Joined
- Jun 26, 2022
- Messages
- 4
Hey everyone!
I've got a bit of a conundrum here. I need an equation to calculate the difference between 2 different compound interest rates, that will add the difference between each previous time period to the total, let me explain:
A Youtube channel has 1000 subscribers, every month that passes, the channel grows by 10%. For every 100 subscribers, the channel will generate a new client every month. Each client is worth $1000/month.
So month 1 the channel grows 100 subscribers, bringing the total to 1100. That means that the channel will generate 11 new clients, which is an extra $11,000/month.
In month 2, the channel grows 110 subscribers, bringing the total to 1210. That means that the channel will generate 12.1 new clients, which is an extra $12,100/month.
I would like to compare the difference in additional monthly revenue if the channel grew by 15% per month.
Currently this is the formula that I have:
Opportunity Cost = (s(1+NGR)t*SCR*RPC)-(s(1+CGR)t*SCR*RPC)
s=current subscribers
t=months
NGR=New Growth Rate
CGR=Current Growth Rate
SCR=Subscriber to Client Rate
RPC=Revenue Per Client
So if we were to calculate the opportunity cost for 6 months from now we would have:
s=1000
t=6
NGR=15%
CGR=10%
SCR=1%
RPC=$1000
(1000(1+0.15)6*0.01*$1000)-(1000(1+0.1)6*0.01*$1000)
(1000(1.15)6*0.01*$1000)-(1000(1.1)6*0.01*$1000)
(2313*0.01*$1000)-(1772*0.01*$1000)
($23,130)-($17,720)
=$5,410/month
So on month 6 the difference in additional revenue generated is $5,410/month (23.13 new clients vs 17.72 new clients).
My problem is, I need to sum the difference in monthly revenue for each month prior. I.e Month 1 difference + Month 2 difference + Month 3 difference + Month 4 difference + Month 5 difference + Month 6 difference = Total monthly difference.
Currently, my equation only tells me the difference in a particular month, but does not sum the difference for each month prior. Can anyone help with an equation to fix this?
Thanks!!
I've got a bit of a conundrum here. I need an equation to calculate the difference between 2 different compound interest rates, that will add the difference between each previous time period to the total, let me explain:
A Youtube channel has 1000 subscribers, every month that passes, the channel grows by 10%. For every 100 subscribers, the channel will generate a new client every month. Each client is worth $1000/month.
So month 1 the channel grows 100 subscribers, bringing the total to 1100. That means that the channel will generate 11 new clients, which is an extra $11,000/month.
In month 2, the channel grows 110 subscribers, bringing the total to 1210. That means that the channel will generate 12.1 new clients, which is an extra $12,100/month.
I would like to compare the difference in additional monthly revenue if the channel grew by 15% per month.
Currently this is the formula that I have:
Opportunity Cost = (s(1+NGR)t*SCR*RPC)-(s(1+CGR)t*SCR*RPC)
s=current subscribers
t=months
NGR=New Growth Rate
CGR=Current Growth Rate
SCR=Subscriber to Client Rate
RPC=Revenue Per Client
So if we were to calculate the opportunity cost for 6 months from now we would have:
s=1000
t=6
NGR=15%
CGR=10%
SCR=1%
RPC=$1000
(1000(1+0.15)6*0.01*$1000)-(1000(1+0.1)6*0.01*$1000)
(1000(1.15)6*0.01*$1000)-(1000(1.1)6*0.01*$1000)
(2313*0.01*$1000)-(1772*0.01*$1000)
($23,130)-($17,720)
=$5,410/month
So on month 6 the difference in additional revenue generated is $5,410/month (23.13 new clients vs 17.72 new clients).
My problem is, I need to sum the difference in monthly revenue for each month prior. I.e Month 1 difference + Month 2 difference + Month 3 difference + Month 4 difference + Month 5 difference + Month 6 difference = Total monthly difference.
Currently, my equation only tells me the difference in a particular month, but does not sum the difference for each month prior. Can anyone help with an equation to fix this?
Thanks!!