Operational Cost Simulator
Interactive what-if tool for modeling operational costs under growth scenarios
Drag the volume slider or select a scenario. Edit costs below to model your specific operation.
Current State
520 orders/month
Growth Scenarios
Cost per Order vs. Volume
Shows how unit economics improve with scale — and where step costs create jumps
Margin % vs. Volume
Identifies the sweet spot where margins peak before capacity constraints compress them
Total Monthly Cost vs. Volume
Step-function costs create visible jumps when hiring thresholds or capacity limits are reached
Cost Structure
Edit any field to see how changes affect your cost curves and margins in real time.
Demo assumptions based on a Terramar-like direct-selling company. All values are editable — replace with your actual data for accurate modeling.
Scenario Comparison
| Metric | Current | Conservative (+30%) | Expected (+50%) | Convention (+100%) | Aggressive (+200%) |
|---|---|---|---|---|---|
| Monthly Volume | 520 | 676 | 780 | 1,040 | 1,560 |
| Monthly Cost | $27,970 | $29,565 | $30,512 | $37,311 | $51,173 |
| Cost / Order | $53.79 | $43.74 | $39.12 | $35.88 | $32.80 |
| Margin | 22.6% | 37.1% | 43.7% | 48.4% | 52.8% |
| Fixed Costs | $22,650 | $22,650 | $22,650 | $22,650 | $22,650 |
| Variable Costs | $5,320 | $6,915 | $7,862 | $10,161 | $15,023 |
| Step Costs | - | - | - | $4,500 | $13,500 |
| Warehouse Utilization | 34.7% | 45.1% | 52.0% | 69.3% | 52.0% |
| Labor Utilization | 41.6% | 54.1% | 62.4% | 55.5% | 83.2% |
| FTE | 2 | 2 | 2 | 3 | 3 |
How This Tool Works
Operational costs are modeled as three layers: fixed costs (rent, equipment, management), variable costs (labor, shipping, packaging per order), and step-function costs (new hires and facility expansions triggered at volume thresholds). This separation reveals how unit economics actually behave at different scales.
The volume slider lets you instantly see what happens to your cost per order, margin, and utilization at any volume level. Volume discount tiers for shipping and packaging kick in automatically, and step costs appear when you cross hiring or capacity thresholds.
Every input is editable — replace the demo defaults with your real numbers for accurate modeling. The URL updates as you adjust, so you can bookmark or share any specific configuration for board presentations.