AlibomicsMoney and Economics
EXPLORE THE MECHANICS

Change a number.
Test an idea.

These small models illustrate concepts. They are not predictions, product quotes or personalised advice.

FINANCE

Compounding

See a fixed annual rate applied to an unchanged starting balance.

£1,102.50 after 2 years.

Annual compounding; no deposits, withdrawals, fees or tax; constant hypothetical rate. Formula: amount × (1 + rate)ᵞᵉᵃʳˢ.

Compound interest
BUSINESS FINANCE

Break-even sales

Work out how many whole units cover fixed costs.

125 units to cover fixed costs; £8 contribution per unit.

Constant price and costs, one product, no capacity limit. Whole units rounded up. If price does not exceed variable cost, positive fixed costs cannot be covered.

Break-even point
FINANCIAL ECONOMICS

Purchasing-power return

Distinguish a nominal change from its inflation-adjusted value.

1.92% real return.

Same observation period; before fees and tax. Formula: (1 + nominal return) ÷ (1 + inflation) − 1.

Real return
ECONOMETRICS

A before–after comparison

Compare changes in a treated group with changes in a comparison group.

Difference in changes: 10 units.

This arithmetic alone does not establish causation. Interpretation requires a credible parallel-trends assumption, no confounding differential changes and a valid comparison design.

Causation