How do I calculate break-even?

[AFMom]

OK, so this is probably way too much info - but it was so funny I had to share. After all my spreadsheets, calculations, and what not to try to decide what we should do, and all of my work on DH showing him all the pros and cons.... DH comes up with.... "wait, you mean the kids will be in the other room and we'll get a bedroom all to ourselves????? Ok - make an offer on that resale!" Funny how we all come up with our own value!!!

 

[twotoohappy]

Originally posted by KelNottAt
Thanks to all of you for your input. I guess it just comes down to there is no scientific formula...

1/(1+R)^N where R = Rate and N= number of years

This is a great analysis from badshoe
http://www.badshoe.com/dvc_analysis.htm

It gives you different senerios re: cost effectiveness. (if you owned the entire time, owned then sold after awhile, etc.)

 

[DrTomorrow]

Originally posted by twotoohappy
1/(1+R)^N where R = Rate and N= number of years

This is a great analysis from badshoe
http://www.badshoe.com/dvc_analysis.htm

It gives you different senerios re: cost effectiveness. (if you owned the entire time, owned then sold after awhile, etc.)

Yes, there is a formula, but the devil is in the assumptions....

 

[Tennesotans]

Just add more fuel to the fire

A DVC contract is an asset -- you could sell at any point. Once again there are more assumptions about depreciation -- but I believe I can resell my contract for about what I paid for it. After two trips.. I feel that I've paid off my closing costs.

Am I at break even?

(yeah -- the price is spectulative... could change
tomorrow... yet another variable to throw into your equations).

Mmmmmmmm - math threads

 

[disneyberry]

<font face="times" size="+0">Just wanted to add that I also agree that you shouldn't take this stuff too seriously. There are just way too many unknown factors to do this kind of calculation. It could drive you crazy. (I wasted about a month trying to make various spreadsheets about this. In the end, it's all just kind of pointless so I decided not to worry about it.)