Factory models

Put the math to work.

Change the assumptions. See the mechanism. Every model is educational and shows its limitations.

Model 01

Investment growth

Starting balance

Monthly contribution

Annual return

Years

Illustrative ending balance$1,376,211

$460,000Total contributed

$916,211Modeled growth

Assumes a constant return compounded monthly with contributions made at month end. Excludes taxes, fees, inflation, and volatility. It is not a forecast.

Model 02

Business valuation

Annual revenue

EBITDA margin

EBITDA multiple

××

Debt

Simplified equity value$7,000,000

$5,000,000Revenue

20%Margin

8×Multiple

−

$1,000,000Debt

Modeled EBITDA: $1,000,000 · Enterprise value: $8,000,000

A simplified educational model. Real valuations may consider cash, working capital, growth, risk, concentration, transaction terms, and many other factors.

Model 03

Millionaire timeline

Current invested balance

Monthly contribution

Annual return

Modeled time to $1,000,00015 years, 11 months

At these assumptions, the model crosses seven figures after 191 monthly cycles.

Assumes a constant monthly-compounded return and steady contributions. Markets do not produce smooth returns, and actual results can be materially different.