Break-even scenario probability calculator

Calculate algebraic break-even success probability and net payoff at the algebraic crossing with your own figures.

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Use algebraic break-even success probability and net payoff at the algebraic crossing to compare changes to your inputs. The method and limits below explain the scope.

Examples

Examples

Try the starting example

Success payoff before upfront cost ($)
100
Failure payoff before upfront cost ($)
-20
Upfront cost paid in either outcome ($)
10
Required alternative net payoff ($)
0
Algebraic break-even success probability (%)
25
Net payoff at the algebraic crossing (USD)
$0.00
Success-probability requirement
At or above threshold

Try another scenario

Success payoff before upfront cost ($)
10
Failure payoff before upfront cost ($)
-20
Upfront cost paid in either outcome ($)
10
Required alternative net payoff ($)
0
Algebraic break-even success probability (%)
100
Net payoff at the algebraic crossing (USD)
$0.00
Success-probability requirement
At or above threshold
Calculation method

Calculation method

Algebraic break-even success probability (%)

Solve p×success+(1−p)×failure−cost=alternative, giving p=(alternative+cost−failure)/(success−failure).

Net payoff at the algebraic crossing (USD)

Substitute the unrounded crossing into the net-payoff formula.

Success-probability requirement

Describe whether feasible probabilities lie above or below the crossing, or whether no/all probabilities can meet the alternative.

Symbols and units
a
Success payoff before upfront cost ($)
b
Failure payoff before upfront cost ($)
c
Upfront cost paid in either outcome ($)
d
Required alternative net payoff ($)

Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.

Assumptions & limits

Assumptions & limits

  • Explicit two-outcome expected-payoff arithmetic. The upfront cost is charged in both outcomes and payoffs exclude that cost. Algebraic probabilities outside 0–1 remain visible instead of being silently clipped.
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Further reading

OpenStax: arithmetic and geometry ↗

Background reading; this does not imply endorsement or independent review of SumFizz.

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