Business decision tool
Sunk Cost Decision Calculator
Evaluate a forward-looking decision using future benefits and avoidable future costs while separating sunk cost.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Continue under the incremental-cost rule
Question → business model → calculation → decision
What business question does this answer?
Evaluate a forward-looking decision using future benefits and avoidable future costs while separating sunk cost.
Why does the model apply?
A cost already incurred and unrecoverable should not change the continue-or-stop decision. It remains relevant for accounting history, but not for incremental choice.
Formula
Forward-looking net benefit = Future benefit − Avoidable future cost; sunk cost is excluded
How should I interpret the result?
Read the result together with its units and time period. Change one assumption at a time to see which input drives the decision.
Worked example
After $50,000 is already sunk, a project with $40,000 future benefit and $30,000 future cost has a positive $10,000 forward-looking net benefit.
What are the limits?
This simplified model cannot capture every tax, accounting, legal, market or operational condition. Verify material decisions against current company records and professional guidance.
Clear answers
Frequently asked questions
What does the Sunk cost decision do?
Evaluate a forward-looking decision using future benefits and avoidable future costs while separating sunk cost.
How does the Sunk cost decision work?
The calculator applies Forward-looking net benefit = Future benefit − Avoidable future cost; sunk cost is excluded. A cost already incurred and unrecoverable should not change the continue-or-stop decision. It remains relevant for accounting history, but not for incremental choice.
What can I learn from the Sunk cost decision?
It connects company inputs to a transparent business result. Change one value at a time to compare operating scenarios.
Does MW SysArc receive or store what I enter?
No. The calculation runs locally in your browser. MW SysArc does not receive or store your calculation inputs.
How should I use the result?
Use the result as an estimate or educational aid. Check important financial, business or policy decisions with qualified sources and current data.
Last reviewed 2026-07-14. Calculations tested 2026-07-14.